Rep. Young Kim, R-Calif., highlights claims of massive government fraud in California, including $928 million diverted to a solar panel program for left-wing activism, and more on “The Evening Edit.”
Governor of California Gavin Newsom Over the weekend, he reiterated his claim that Florida and Texas are the “true high-tax states,” arguing that residents of those lower- and middle-income states bear a heavier tax burden than their counterparts in the Golden State.
Speaking on stage at SXSW in Austin, Texasthe Democratic governor has framed the issue in moral terms.
“We have the most progressive tax rates in America. Texas the most regressive. Texas taxes poor people more than we tax our richest. The question for you is: Who is the higher tax state? California or Texas? Who are you for? Are you just for the 1% or are you for the 98%?” Newsom said before launching an attack on Florida, which he called the “other regressive tax state.”
“Your middle class pays more taxes in Texas than our middle class pays in California,” Newsom added. “It’s a great mythology – it’s just ‘the richest of the rich come here because they don’t have to pay a cent.'”
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Gavin Newsom speaks on stage during the “Networth And Chill” session during the 2026 SXSW Conference And Festival at Hilton Austin on March 15, 2026 in Austin, Texas. (Julia Beverly/WireImage/Getty Images)
The comments received widespread criticism online, with RealClearPolitics co-founder Tom Bevan calling Newsom’s claim a “blatant, verifiable falsehood.”
He shared a Wallethub 2025 analysis that ranked U.S. states by total tax burden, with California coming in fourth, behind Vermont, New York and Hawaii.
The governor, who has previously made similar arguments, appeared to be referring to a study from the Institute on Taxation and Economic Policy (ITEP), which ranks Florida as the most regressive state and local tax system in the country and Texas as the seventh most regressive.
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ITEP’s analysis focuses on how the tax burden is distributed across income groups, rather than on overall tax levels. The group argues that states like Texas and Florida look “low on tax dollars” largely because they do not impose a broad-based personal income tax — a structure that disproportionately benefits high-income earners.
To make up the difference, these states rely more heavily on sales, excise and property taxes, which typically take a larger share of income from lower-income households. Californiain contrast, uses a highly progressive income tax system that places a greater share of the burden on top earners and helps offset regressive taxes lower on the income ladder.
Vivian Tu, left, and Gavin Newsom speak onstage during “Networth And Chill With Guest Governor Gavin Newsom” at the 2026 SXSW Conference And Festival at Hilton Austin on March 15, 2026 in Austin, Texas. (Gary Miller/FilmMagic/Getty Images)
Critics, however, say framing paints only part of the picture because it focuses on the tax burden by income group rather than the overall tax environment — where California remains far more burdensome for top earners, investors and many businesses.
California has the highest marginal income tax rate in the country at 13.3%, while Texas and Florida have no state income tax. Per capita, California also collects significantly more state and local taxes than either state, according to data from the Tax Foundation.
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The debate comes as California has seen continued net domestic outmigration in recent years, while Texas and Florida have attracted new residents and businesses, US Census Bureau data show.
Florida Governor Ron DeSantis, who has repeatedly clashed with Newsom over the relative merits of red and blue state governance, mocked the Democrat’s comments about X.
Florida Governor Ron DeSantis speaks during a roundtable discussion on college sports in the East Room of the White House on March 6, 2026 in Washington, DC (Anna Moneymaker/Getty Images/Getty Images)
“There are lies, damn lies and statistics. And then there’s the claim that California has lower taxes than Florida,’ DeSantis wroteRepost Bevan. “Even people who like California government recognize that CA is a very high-tax state: the highest sales, income and gas taxes in the country.”
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