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Apple’s $350 billion plan to boost U.S. economy over the next 5 years

Yesterday, Apple highlighted its plan to boost the U.S. economy through job creation, existing investments and new investments, by contributing $55 billion to the economy in 2018 and $350 billion over the course of the next five years.

Alongside this $350 billion contribution through direct employment, investment with domestic suppliers, and the App Store economy, the company will increase its Advanced Manufacturing Fund from $1 billion to $5 billion.

The Advanced Manufacturing Fund will create jobs in the U.S. through investments in Apple suppliers. The company has already invested $200 million in Corning, the maker of Gorilla Glass, and $390 million in Finisar, a supplier that makes vertical-cavity surface-emitting laser (VCSEL) components that are found in the iPhone X’s True Depth camera.

“Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy,” said Tim Cook, Apple’s CEO. “We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness. We have a deep sense of responsibility to give back to our country and the people who help make our success possible.”

Much of Apple’s overseas profit will be repatriated overseas and because of this the company expects to pay $38 billion in taxes. This will be the largest payment ever made of this kind and alongside U.S. investments and planned capital expenditures, will amount to $75 billion of the overall $350 billion contribution. Apple will pay 15.5% in taxes to repatriate overseas cash which suggests that the company will repatriate $245 billion, or almost all of its foreign money.

Apple will be creating 20,000 jobs and will spend $30 billion hiring new employees at its existing and new campus. This new campus will “initially house technical support for customers” and its location will be announced later in the year.  More than $10 billion of Apple’s expenditures will be investments in data centers across the U.S. including a new facility in Reno, Nevada.

The final plan to boost the economy is through education. The company is planning to expand its current coding initiatives that are designed to help people learn how to create iOS apps using Swift and it will also increase funding for ConnectED which helps students in “historically undeserved companies” learn coding skills.

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