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California Gov. Gavin Newsom over the weekend renewed his declare that Florida and Texas are the “actual high-tax states,” arguing that lower- and middle-income residents in these states shoulder a heavier tax burden than their counterparts within the Golden State.
Talking onstage at SXSW in Austin, Texas, the Democratic governor framed the problem in ethical phrases.
“We’ve essentially the most progressive tax charges in America. Texas, essentially the most regressive. Texas taxes poor people greater than we tax our richest. The query for you is who’s the upper tax state? California or Texas? Who’re you for? Are you only for the 1% or are you for the 98%?” Newsom mentioned, earlier than taking a shot at Florida, which he referred to as the “different regressive tax state.”
“Your center class pays extra taxes in Texas than our center class in California,” Newsom added. “It’s an awesome mythology – it’s simply ‘the richest of the wealthy come right here as a result of they’ll keep away from paying a rattling penny.’”
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Gavin Newsom speaks onstage in the course of the “Networth And Chill” featured session in the course of the 2026 SXSW Convention And Competition at Hilton Austin on March 15, 2026, in Austin, Texas. (Julia Beverly/WireImage / Getty Photos)
The remarks drew pushback on-line, with RealClearPolitics co-founder Tom Bevan calling Newsom’s declare a “blatant, verifiable falsehood.”
He shared a Wallethub 2025 evaluation rating U.S. states by total tax burden, with California coming in at 4th total, behind Vermont, New York and Hawaii.
The governor, who has made comparable arguments earlier than, seemed to be referring to a examine from the Institute on Taxation and Financial Coverage (ITEP), which ranks Florida as essentially the most regressive state and native tax system within the nation and Texas the seventh-most regressive.
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ITEP’s evaluation focuses on how tax burdens are distributed throughout revenue teams reasonably than total tax ranges. The group argues that states akin to Texas and Florida look “low tax” largely as a result of they don’t levy a broad-based private revenue tax — a construction that disproportionately advantages excessive earners.
To make up the distinction, these states rely extra closely on gross sales, excise and property taxes, which are inclined to take a bigger share of revenue from lower-income households. California, against this, makes use of a extremely progressive revenue tax system that locations extra of the burden on prime earners and helps offset regressive taxes decrease down the revenue ladder.
Vivian Tu, left, and Gavin Newsom communicate on stage throughout “Networth And Chill With Visitor Governor Gavin Newsom” on the 2026 SXSW Convention And Competition at Hilton Austin on March 15, 2026, in Austin, Texas. (Gary Miller/FilmMagic / Getty Photos)
Critics, nonetheless, say that framing captures solely a part of the image as a result of it focuses on tax burden by revenue group reasonably than total tax local weather — the place California stays much more burdensome for prime earners, buyers and plenty of companies.
California has the best prime marginal revenue tax fee within the nation at 13.3%, whereas Texas and Florida haven’t any state revenue tax. On a per capita foundation, California additionally collects considerably extra in state and native taxes than both state, in accordance with information from the Tax Basis.
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The talk comes as California has seen continued internet home outmigration lately, whereas Texas and Florida have attracted new residents and companies, in accordance with U.S. Census Bureau information.
Florida Gov. Ron DeSantis, who has repeatedly clashed with Newsom over the relative deserves of red- and blue-state governance, mocked the Democrat’s remarks on X.
Florida Gov. Ron DeSantis speaks throughout a roundtable dialogue on school sports activities within the East Room of the White Home on March 6, 2026, in Washington, D.C. (Anna Moneymaker/Getty Photos / Getty Photos)
“There are lies, damned lies and statistics. Then there’s no matter you’d name the declare that California has decrease taxes than Florida,” DeSantis wrote, reposting Bevan. “Even individuals who like California governance acknowledge CA is a really excessive tax state: highest gross sales, revenue and gasoline taxes within the nation.”
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FOX Enterprise has reached out to Newsom’s workplace, the Institute on Taxation and Financial Coverage and the Tax Basis for extra remark.
