State of Delaware

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Delaware

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Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. The state takes its name from Thomas West, 3rd Baron De La Warr, a British nobleman and Virginia's first colonial governor, after whom (what is now called) Cape Henlopen was originally named.

Delaware is located in the eastern section of the Delmarva Peninsula, between Delaware Bay and Chesapeake Bay, and is the second smallest state in area (after Rhode Island). 2007 estimates place the population of Delaware ranking 45th in the nation, but 6th in population density, with more than 60% of the population in New Castle County. Delaware is divided into three counties: New Castle, Kent, and Sussex. While the southern two counties have historically been predominantly agricultural, the northernmost county has helped lead the state to rank second in civilian scientists and engineers as a percentage of the workforce and number of patents issued to companies or individuals per 1,000 workers. The history of the state's economic and industrial development is closely tied to the impact of the Du Pont family, founder of E. I. du Pont de Nemours and Company, one of the world’s largest chemical companies.

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The gross state product of Delaware in 2003 was $49 billion. The per capita personal income was $34,199, ranking 9th in the nation. In 2005, the average weekly wage was $937, ranking 7th in the nation.

Delaware's agricultural output consists of poultry, nursery stock, soybeans, dairy products and corn. Its industrial outputs include chemical products, automobiles, processed foods, paper products, and rubber and plastic products. Delaware's economy generally outperforms the national economy of the United States.

The state's largest employers are:

  • government (State of Delaware, New Castle County)
  • education (University of Delaware)
  • banking (Bank of America, Wilmington Trust, First USA / Bank One / JPMorgan Chase, AIG, Citigroup, Deutsche Bank, Barclays plc)
  • chemical and pharmaceutical companies (E.I. du Pont de Nemours & Co., Syngenta, AstraZeneca, and Hercules, Inc.)
  • healthcare (Christiana Care Health System, Alfred I. duPont Hospital for Children)
  • automotive manufacturing (General Motors, Chrysler)
  • farming, specifically chicken farming in Sussex County (Perdue Farms, Mountaire Farms)

The Dover Air Force Base, located next to the state capital of Dover, is one of the largest Air Force bases in the country and is a major employer in Delaware. In addition to its other responsibilities in the USAF Air Mobility Command, this air base serves as the entry point and mortuary for American military personnel, and some U.S. government civilians, who die overseas.

Delaware has six different income tax brackets, ranging from 2.2% to 5.95%. The state does not assess sales tax on consumers. The state does, however, impose a tax on the gross receipts of most businesses. Business and occupational license tax rates range from 0.096% to 1.92%, depending on the category of business activity.

Delaware does not assess a state-level tax on real or personal property. Real estate is subject to county property taxes, school district property taxes, vocational school district taxes, and, if located within an incorporated area, municipal property taxes.

Over 50% of US publicly-traded corporations and 60% of the Fortune 500 companies are incorporated in Delaware; the state's attractiveness as a corporate haven is largely due to its business-friendly corporation law.Franchise taxes on Delaware corporations supply about one-fifth of its state revenue. Although Delaware is considered to be a tax haven, it is not listed on the OECD's 2009 "Black List", despite objections of Luxembourg´s and Switzerland's authorities.

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