Rep. Younger Kim, R-Calif., highlights claims of huge authorities fraud in California, together with $928M diverted from a photo voltaic panel program for left-wing activism, and extra on ‘The Night Edit.’
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 have now 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 stated, earlier than taking a shot at Florida, which he known 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 amazing mythology – it’s simply ‘the richest of the wealthy come right here as a result of they will keep away from paying a rattling penny.’”
BILLIONAIRES AND BUSINESSES FUEL GROWING EXODUS FROM BLUE STATES
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 Photographs)
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 general tax burden, with California coming in at 4th general, behind Vermont, New York and Hawaii.
The governor, who has made comparable arguments earlier than, gave the impression to be referring to a examine from the Institute on Taxation and Financial Coverage, which ranks Florida as essentially the most regressive state and native tax system within the nation and Texas the seventh-most regressive.
RENO SURPASSES LAS VEGAS AS TOP DESTINATION FOR CALIFORNIA HOMEBUYERS SEEKING AFFORDABILITY
ITEP’s evaluation focuses on how tax burdens are distributed throughout earnings teams somewhat than general tax ranges. The group argues that states comparable to Texas and Florida look “low tax” largely as a result of they don’t levy a broad-based private earnings 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 earnings from lower-income households. California, against this, makes use of a extremely progressive earnings tax system that locations extra of the burden on prime earners and helps offset regressive taxes decrease down the earnings ladder.
Vivian Tu, left, and Gavin Newsom converse 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 Photographs)
Critics, nonetheless, say that framing captures solely a part of the image as a result of it focuses on tax burden by earnings group somewhat than general tax local weather — the place California stays way more burdensome for prime earners, traders and lots of companies.
California has the best prime marginal earnings tax fee within the nation at 13.3%, whereas Texas and Florida haven’t any state earnings tax. On a per capita foundation, California additionally collects considerably extra in state and native taxes than both state, based on knowledge from the Tax Basis.
THE STATES WHERE AMERICANS PAY THE MOST – AND LEAST – FOR ELECTRICITY
The talk comes as California has seen continued web home outmigration lately, whereas Texas and Florida have attracted new residents and companies, based on U.S. Census Bureau knowledge.
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 Photographs / Getty Photographs)
“There are lies, damned lies and statistics. Then there may be 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, earnings and fuel taxes within the nation.”
CLICK HERE TO GET FOX BUSINESS ON THE GO
FOX Enterprise has reached out to Newsom’s workplace, the Institute on Taxation and Financial Coverage and the Tax Basis for extra remark.
