Texas

Texas is the second-largest U.S. state by both area and population, and the largest state in the contiguous United States. The name, based on the Caddo word “Tejas” meaning “friends” or “allies”, was applied by the Spanish to the Caddo themselves and to the region of their settlement in East Texas. Located in the South Central United States, Texas is bordered by Mexico to the south, New Mexico to the west, Oklahoma to the north, Arkansas to the northeast, and Louisiana to the east. Texas has an area of 268,820 square miles (696,200 km2), and a growing population of 25.1 million residents.

Houston is the largest city in Texas and the fourth-largest in the United States, while San Antonio is the second largest in the state and seventh largest in the United States. Dallas–Fort Worth and Greater Houston are the fourth and sixth largest United States metropolitan areas, respectively. Other major cities include El Paso and Austin—the state capital. Texas is nicknamed the Lone Star State to signify Texas as an independent republic and as a reminder of the state’s struggle for independence from Mexico. The “Lone Star” can be found on the Texas State Flag and on the Texas State Seal today.

Due to its size and geologic features such as the Balcones Fault, Texas contains diverse landscapes that resemble both the American South and Southwest. Although Texas is popularly associated with the Southwestern deserts, less than 10% of the land area is desert. Most of the population centers are located in areas of former prairies, grasslands, forests, and the coastline. Traveling from east to west, one can observe terrain that ranges from coastal swamps and piney woods, to rolling plains and rugged hills, and finally the desert and mountains of the Big Bend.

One Texas industry that thrived after the Civil War was cattle. Due to its long history as a center of the industry, Texas is associated with the image of the cowboy. The state’s economic fortunes changed in the early 20th century, when oil discoveries initiated an economic boom in the state. With strong investments in universities, Texas developed a diversified economy and high tech industry in the mid-20th century. As of 2010 it shares the top of the list of the most Fortune 500 companies with California at 57. With a growing base of industry, the state leads in many industries, including agriculture, petrochemicals, energy, computers and electronics, aerospace, and biomedical sciences. It leads the nation in export revenue since 2002 and has the second-highest gross state product.

As of 2008, Texas had a gross state product (GSP) of $1.224 trillion, the second highest in the U.S. ts GSP is comparable to the GDP of India or Canada which are ranked 12th and 11th worldwide. Texas’s economy is the fourth largest in the world of country subdivisions behind England (as part of the UK), California and Tokyo Prefecture. Its Per Capita personal income in 2009 was $36,484, ranking 29th in the nation. Texas’s large population, abundance of natural resources, and diverse population and geography have led to a large and diverse economy. Since oil was discovered, the state’s economy has reflected the state of the petroleum industry. In recent times, urban centers of the state have increased in size, containing two-thirds of the population in 2005. The state’s economic growth has led to urban sprawl and its associated symptoms.

As of January 2010, the states unemployment rate is 8.2%. Texas has a “low taxes, low services” reputation. According to the Tax Foundation, Texans’ state and local tax burdens rank among the lowest in the nation, 7th lowest nationally; state and local taxes cost $3,580 per capita, or 8.4% of resident incomes. Texas is one of seven states that lack a state income tax. Instead, the state collects revenue from a state sales tax, which is charged at the rate of 6.25%, but local taxing jurisdictions (cities, counties, special purpose districts, and transit authorities) may also impose sales and use tax up to 2% for a total maximum combined rate of 8.25%. Texas is a “tax donor state”; in 2005, for every dollar Texans paid to the federal government in federal income taxes, the state received approximately $0.94 in benefits.

With large universities systems coupled with initiatives like the Texas Enterprise Fund and the Texas Emerging Technology Fund, a wide array of different high tech industries have developed in Texas. The Austin area is nicknamed the “Silicon Hills” and the north Dallas area the “Silicon Prairie”. Texas has the headquarters of many high technology companies, such as Dell, Inc., Texas Instruments, Perot Systems, AT&T and Electronic Data Systems (EDS, acquired by Hewlett-Packard, August 2008), as well as the former headquarters of Compaq Computer Corp, which exists today as the largest campus of Hewlett-Packard (headquartered in CA).