Governor Gavin Newsom’s bold claim at SXSW that middle-class Texans and Floridians pay higher taxes than Californians crumbles under fact-checks, exposing liberal spin on America’s tax migration crisis.
Story Snapshot
- Newsom asserted California has the most progressive taxes while labeling Texas and Florida regressive, but overall tax burdens prove California highest.
- California collects ~$10,000 per capita in taxes annually, double Texas and Florida’s ~$5,000, driving families to low-tax freedom states.
- Florida Gov. Ron DeSantis slammed the claims as “lies, damned lies and statistics,” highlighting California’s top sales, income, and gas taxes.
- Mass outmigration from California to Texas and Florida continues, fueled by punitive high taxes under Newsom’s governance.
- Fact-checkers from Just Facts and Tax Foundation debunk Newsom, affirming red states’ superior tax climates for working families.
Newsom’s SXSW Tax Claims
California Governor Gavin Newsom spoke at the SXSW Conference in Austin, Texas. He claimed California boasts the most progressive tax rates in America, with Texas and Florida as the most regressive. Newsom argued middle-class residents in those states pay higher taxes than Californians. He framed this as moral superiority, supporting “the 98%” over “the 1%.” Critics immediately called this selective rhetoric ignoring total tax burdens. This fits Newsom’s pattern of defending California’s model amid resident exodus.
Fact-Check Fail: Newsom's Regressive Tax Attack on Texas, Florida Debunkedhttps://t.co/q1WyXRq12c
— RedState Updates (@RedStateUpdates) March 22, 2026
Fact-Checks Expose Higher California Burdens
Just Facts analysis reveals California’s top marginal income tax rate at 13.3%, the nation’s highest, while Texas and Florida impose no state income tax. California collects about $10,000 per capita annually, versus $5,000 in Texas and Florida. The state taxes 14% of its economy compared to 9% in the others. Gas taxes hit 70.9 cents per gallon in California, over triple Texas’s 20 cents. Sales tax stands at 7.2% in California against 6.2% in Texas and 6.0% in Florida. WalletHub ranks California fourth in overall tax burden.
DeSantis and Critics Push Back
Florida Governor Ron DeSantis responded on X, stating even California fans admit it has the highest sales, income, and gas taxes nationally. RealClearPolitics co-founder Tom Bevan labeled Newsom’s claim a “blatant, verifiable falsehood.” Tax Foundation data supports this, showing California’s superior per capita collections. ITEP, Newsom’s cited source, measures progressivity by income distribution, ranking Florida most regressive and Texas seventh. Critics note this ignores comprehensive burdens favoring red states’ no-income-tax models that attract jobs and families.
Migration Trends Vindicate Low-Tax States
U.S. Census data confirms California’s net domestic outmigration persists, while Texas and Florida gain residents and businesses. High taxes contribute to this shift, reshaping electoral maps and economic power toward conservative governance. Middle- and lower-income families bear the brunt, facing steeper costs in California. Businesses relocate for lower operating expenses, boosting red state growth. Newsom’s rhetoric overlooks these realities, as verified data shows his high-tax model repels the very middle class he claims to champion.
Methodological Dispute Underlies Debate
ITEP focuses on regressivity, arguing no-income-tax states burden lower earners via sales and property levies. Critics counter this captures partial picture, excluding overall climate. Rockefeller Institute verified Newsom’s 2022 federal balance claim: California sends $83.1 billion more than received, Texas gets $71.1 billion extra. This ties to California’s wealthier base and population. Yet total tax metrics contradict Newsom’s “lower tax” spin for middle class. Red states embody limited government, drawing patriots fleeing blue-state overreach.
Sources:
Fact-Check Fail: Newsom’s Regressive Tax Attack on Texas, Florida Debunked
Newsom Texas Florida tax claim critics
California Texas federal balance payments GDP
