The controversial 2018 tax bill is in good graces with Apple, Inc. The bill, which will cut corporate tax rates from 35% to 21% has Apple saying “we’re coming home.” Apple has an estimated $252 billion in funds held overseas, accounting for 94% of their earnings. Last week, Apple released an announcement regarding their five year plan. This plan includes bringing all of those overseas funds back to the states. It also plans to open a new campus and add 20,000 new jobs to the U.S. economy. These combined ventures have Apple putting an estimate $350 billion back into the U.S. economy.
In addition to domestic financing and new jobs, Apple is also using this five year plan to recognize its employees worldwide. In a letter sent to its employees, the company has committed to granting $2,500 in restricted stock to all employees up to and including Senior Management. They also plan to expand on the giving back vibes by matching all employee charitable donations up to $10,000 annually by a rate of 2 to 1 in the 2018 fiscal year.
Apple is working to becoming your wholesome, home grown, all American, golden boy. The Associated Press quotes CEO Tim Cook expressing the organizations recognition of its success having originated in the U.S. and its commitment to repatriation during a new warehouse opening ceremony is Reno, Nevada. A quote which received unanimous nods of approval from the White House.
It’s optimistic image and obvious financial potential is predicted to have cities across the country offering tax breaks and incentives to become the location for the new Apple campus. It is likely to be similar to that which occurred when Amazon announced plans to open a second headquarters in North America. Amazon recently announced narrowing the 238 offers from cities across North America to 20 cities. 19 of these are U.S. Cities, including Philadelphia. They plan to make a decision later this year.
As a life long resident, one can’t help but wonder about the potential of a tech invasion in Philadelphia. Could being selected as a headquarters for Amazon make us more attractive for a corporation like Apple, Inc? Is there even room here for that kind of growth? Could Philadelphia be in the running to be the East Coast, modified version of Silicon Valley?