Welcome to Delaware, where the Delaware tax laws have rendered the state as a tax haven and home to about 65% of Fortune 500 companies. That is where this video by Half as Interesting comes in that explain the Delaware tax laws and the Delaware loophole.
Corporations do not like taxes; this is not a piece of news. That is exactly why tax havens are so popular among corporations. One such tax haven exists in the United States; the Delaware state. It is home to only 0.3% percent of the US population and also houses 65% of Fortune 500 companies along with the 80% of publicly traded US companies.
Why is that? Why are so many companies based in Delaware if the population of the state is so low? That is because of something that has been termed as the Delaware loophole that says that Delaware doesn’t tax intangible assets. The tax law is so effective that according to estimates, the government is losing $9.5 billion every year thanks to the Delaware loophole.
Thanks to this loophole, 285,000 businesses have actually opted to be legally based in a small building that is located at 1209 Orange St, Wilmington, Delaware. The CT corporation is in charge of running the building and takes care of the mail that is received by the companies housed within the building. Clients of the building include Google, Coca-Cola, Apple, and Walmart. Half as Interesting will explain the Delaware loophole in detail in their conventional sense of humor.
If you want to learn more about the Delaware loophole and how companies are able to save money by basing themselves in the state of Delaware in the United States, check out the video by Half as Interesting given below. Do let us know what you think of the video and be sure to share it with your friends and family members.