Tim Cook on Tuesday morning appeared before Congress to talk about Apple’s tax practices, with a specific focus on Apple’s foreign stash of cash. As it stands now, the bulk of Apple’s revenue is derived from overseas sales. Consequently, Apple has chosen to keep that cash abroad where it’s subject to much lower tax rates than the corporate income tax rate of 35% it would be subject to if it brought that cash back.
During his opening remarks, Cook highlighted all Apple has done for the U.S. economy, emphasizing how much the company already pays in domestic taxes and how it’s been responsible for the creation of hundreds of thousands of new jobs in the U.S.
Further, Cook noted that Apple was investing $100 million to begin manufacturing Macs in the US. While we had previously heard of Apple’s plans to do so, Cook for the first time fleshed out some more details, in a geographic sense, surrounding Apple’s plans.
Specifically, Cook noted that Apple’s upcoming “made in the USA” line of Macs will be assembled in Texas and will use components sourced from Texas, Illinois, Florida and Kentucky.
As for what type of Mac will be assembled in the US, Cook in an interview last week indicated that it would be a new model of an already-existing family.