Newsom Sparks Backlash Over Claim California Taxes Lower Than Texas, Florida

California governor's assertion that 'real' high-tax states are Florida and Texas draws sharp rebuke from Florida's DeSantis

Mar. 16, 2026 at 10:18pm

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California Governor Gavin Newsom sparked backlash after claiming at the SXSW conference that Florida and Texas, not California, are the 'real' high-tax states. Newsom argued that Texas 'taxes poor folks more than we tax our richest' and that Florida is also a 'regressive tax state' where the middle class pays more than in California. However, critics quickly disputed Newsom's claims, with Florida Governor Ron DeSantis calling them 'lies' and tax policy experts saying Newsom's assertions 'do not stand up to scrutiny'.

Why it matters

Newsom's comments come as he continues to position himself as a potential 2028 presidential candidate, taking jabs at Republican-led states like Florida. The debate over state tax burdens is a politically charged issue, with Newsom touting California's progressive tax structure while critics argue the state's overall high cost of living negates any benefits of its tax system.

The details

Newsom's claims appear to be based on a study from the Institute for Taxation and Policy that found Florida ranks highest in 'tax inequality,' or the share of taxes paid by the poorest compared to the richest. However, tax policy experts say Newsom's broader assertions are misleading. The Tax Foundation ranked California 48th in overall tax competitiveness in 2026, while a Wallethub analysis placed California 4th in the country in overall tax burden. Critics argue that when factoring in California's high housing, fuel, and other costs, the state's tax burden is significantly higher than Florida and Texas.

  • Newsom made the claims at the SXSW conference in Austin, Texas on Sunday, March 16, 2026.
  • In 2022, Newsom ran ads in Florida urging residents opposed to policies like abortion restrictions to move to California.

The players

Gavin Newsom

The governor of California who made the claims about California's taxes being lower than Florida and Texas.

Ron DeSantis

The governor of Florida who sharply rebuked Newsom's claims, calling them 'lies'.

Jared Walczak

A fellow at the Washington, DC-based Tax Foundation who said Newsom's claim 'does not stand up to scrutiny'.

David Kline

Of CalTax, a Sacramento tax policy advocacy organization, who argued that if Californians travel to other states they will see that California's taxes are higher.

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What they’re saying

“There are lies, damned lies and statistics. Then there is whatever you'd call the claim that California has lower taxes than Florida.”

— Ron DeSantis, Governor of Florida

“States like Florida and Texas have much lower tax burdens overall. It flies in the face of people's revealed preferences ... they are choosing states with lower income taxes in particular.”

— Jared Walczak, Fellow, Tax Foundation

“If you ask any California who travels to another state what they paid in taxes, I think you will have agreement that California's are higher.”

— David Kline, CalTax

The takeaway

Newsom's claims about California's tax burden being lower than Florida and Texas have been widely disputed, with critics arguing the governor's assertions do not align with data on overall state tax competitiveness and the high cost of living in California. The debate highlights the politically charged nature of state tax policies as Newsom positions himself for a potential 2028 presidential run.