As published on verdict.co.uk, Thursday 29th April, 2021.
As the Biden administration readies tax increases on Corporate America and, with regulatory action on the horizon, Big Tech is trumpeting its value to the US economy. Apple, notably, and Intel have been re-iterating their US investments and how much that generates for local economies.
Apple has outlined plans to increase its investments in several US states, including California, Colorado, Massachusetts, Texas, Washington, and Iowa. New data centers are high on Apple’s investment agenda.
Apple is the largest taxpayer in the US, with its activities throughout the country supporting over 2.7 million jobs. Its tax burden will increase after US President Joe Biden raises corporate taxes to pay for public investments. The US corporate tax rate could jump from 21% to 28%.
A proposal seeks tax increases levied for profits held overseas, clamping down on the practice of putting income-generating assets in lower-tax offshore countries. Such a proposal would undoubtedly impact Big Tech.
Apple’s reiteration of its value to local economies is a hint that it may not be able to continue making these types of investments if its profits are squeezed. Apple has also emphasized that the iOS app economy it has developed and grown provides work for millions of developers.
This week, the company said that it would raise its US investment commitments by 20% to $430bn over the next five years.
Apple’s goal is to develop next-generation silicon operations and drive 5G investment across nine US states. It will create 20,000 new jobs in the US, including building a new campus and engineering hub in North Carolina. Its investment in the Raleigh Triangle region is expected to create 3,000 jobs in artificial intelligence and software engineering. Apple also plans to increase its engineering operations in Boulder, Colorado and employees should start moving into another $1bn campus in Austin, Texas next year.