Apple today announced a comprehensive $2.5 billion plan to help address the housing availability and affordability crisis in California. As costs skyrocket for renters and potential homebuyers — and as the availability of affordable housing fails to keep pace with the region’s growth — community members like teachers, firefighters, first responders and service workers are increasingly having to make the difficult choice to leave behind the community they have long called home. Nearly 30,000 people left San Francisco between April and June of this year and homeownership in the Bay Area is at a seven-year low.
2.5 billion dollar sure does sound like a big number.
But wait a second – rewind to the middle of last year:
For years, Apple has held billions of dollars of cash overseas and insisted it won’t bring it home until the US gives it a better deal on the taxes it would have to pay to repatriate the funds. As of 2017, that cash pile had grown to an astonishing $252 billion. Now that lawmakers have passed a $1.5 trillion tax cut that primarily benefits corporations and the wealthy, Apple sees its chance to go forward with bringing that cash home before anyone changes their mind. According to Apple’s announcement, it’ll pay a one time tax of $38 billion.[…]
If Apple had paid the previous tax rate of 35 percent, its bill would have come out to around $88 billion. Now, that money can go into making the company even larger and providing more cash to hold overseas until Uncle Sam cries uncle again.
Apple got a massive tax cut of 50 billion dollars just last year, so this 2.5 billion dollar represents 5 percent of said tax cut.