Fact check: Newsom says working-class taxes are higher in Texas, Florida than California. Is he right?

  • Oops!
    Something went wrong.
    Please try again later.

Gov. Gavin Newsom continues to insist that low-wage Californians are taxed less in the state than their counterparts in Texas and Florida.

He’s right about those making up to roughly $55,000 a year. Those earning more, though, generally pay more in taxes in California.

Assessing tax burdens is an inexact science, filled with variables such as a person’s deductions, property ownership, sales purchases and other factors.

Newsom contended this week in a tweet that “Republican-led states like Florida and Texas tax low-wage workers more than we tax millionaires and billionaires.”

And, he added, “They talk about how they are for the working folks and middle class — they are not. Look at who they tax.”

He spoke about the subject on the “No Lie with Bryan Tyler Cohen” podcast. Cohen is a progressive YouTuber and podcaster.

“And they call us the high tax state,” Newsom said on the podcast. “How can you play that? It’s who are you for and it’s exposed in this. They talk about this populism for the working folks and the middle class and they’re not. Look at who they tax. Look at their policies. Look who they benefited.”

California has the highest state income tax rate in the country for wealthier people, 13.3% for millionaires. But it is progressive, meaning those with lower incomes pay a lower percentage of income tax.

Texas and Florida have no state income tax.

Newsom’s office cited for The Bee a 2018 study from the Institute on Taxation and Economic Policy, a respected left-leaning research group in Washington.

“Many states that tout themselves as ‘low tax’ states are often only low tax for the wealthy, and high tax for lower-income families,” said Jon Whiten, ITEP communications director.

ITEP’s “inequality index” rated Texas as the second most unfair tax system, followed next by Florida. California was the fairest. The study includes state and local sales, property and income taxes.

“Many low- and middle-income families pay lower taxes under California’s moderately progressive tax system than they would under the highly regressive systems used to fund public services in Texas and the other more conservative states.,” ITEP said.

Middle-class taxes

ITEP also found that starting with people earning $56,000 or more in Texas, or $49,800 in Florida, the rates are lower than for Californians in the same income grouping.

These income earners, the fourth highest 20% of incomes, pay 8.6% in taxes in Texas, 8.1% in Florida and 9% in California.

The study found California had a “comparatively high combined state and local sales tax rate and comparatively high cigarette tax,” among other differences.

Other studies have found California’s tax burden is a mixed picture.

WalletHub, a financial services firm, found this year that California had the nation’s 12th-highest tax burden. Its income tax burden was third, while its property taxes ranked 23rd and sales and excise taxes 31st.

Texas was 29th. Its property taxes ranked eighth highest in the country and sales taxes were 11th.

Florida was 46th, as its property tax burden ranked 25th and sales taxes were 18th.