So you think you live in a low tax state???? Is this fare? The rich pay 3.1 percent in Taxas vs. 12.4 percent in Cali....

Yes, Texans actually pay more in taxes than Californians do

While ITEP's findings were compiled from 2018 data, one expert says not much has changed in Texas over the last four years. 

Ariana Garcia

Texas politicians and CEOs often tout the state as "low-tax" because workers here aren't forced to pay the local government a percentage of their income, in contrast to places like California. However, recently resurfaced data shows that may only apply if you're a wealthy resident here. A popular post recently shared on Reddit's main economic forum displayed a graphic that explained how Texans actually pay more in taxes than Californians do, unless those Texans are in the top one percent of all earners. 

The graphic reportedly contains 2018 data from the Institute of Taxation and Economic Policy (ITEP), which compiled statistics regarding IRS income tax, sales tax, property tax, and information from Bureau of Labor Statistics' Consumer Expenditure Survey from sources including the U.S. Census Bureau, according to a report by the San Antonio Express News. 

The graphic also contained a watermark from the Instagram account Progress for the People, which creates similar infographics for the social media platform. The graphic was posted to the account in May along with some context in the caption, which read: "California has the most 'equitable' state/local tax structure in the US, while Texas has the 2nd least. Despite right [wing] propaganda to the contrary, Texas is not low tax for the people most in need. They only care about reducing taxes for the rich, not about helping the poor and creating an equitable system."

According to ITEP, Texans whose salaries fall into the lowest 20 percent of income earners (making less than $20,900 annually) pay about 13 percent of their income in state and local taxes. Meanwhile, Californians in the bottom 20 percent (making less than $23,200 annually) pay 10.5 percent. In Texas, the middle 20 percent of income earners ($35,800-$56,000) pay 9.7 percent in state and local taxes in contrast to middle income Californians ($39,100-$62,300), who only pay 8.9 percent. Most glaringly, the top 1 percent of earners in Texas ($617,900 or more) pay 3.1 percent of their income in contrast to top earnings in California ($714,400 or more) who pay 12.4 percent. 

ITEP also ranked Texas as the second-most regressive tax state, behind Washington State, due to low-income taxpayers bearing a disproportionate share of the tax burden, according to the nonprofit. In contrast, California was ranked the most progressive tax state because residents in higher tax brackets predominantly pay higher tax rates. 

Robert Peroni, a tax professor at the University of Texas at Austin School of Law, told the Express News that despite these findings first being published four years ago, not much has changed in the Lone Star State in relation to taxes. Peroni added that states with income taxes, like California, actually do more to lower inequality.

"That makes it very hard to solve this inequality problem," Peroni opined. "When they say Texas is a very regressive state, it means if you're low income, you spend 100 percent of it, you spend it. Some of it is tax-exempt, but most of that spending is taxed by sales tax." 

Following the data resurfacing online, several took to social media to express their shock at the findings. One Twitter user wrote that the data "completely undercuts the main talking point from conservatives about Texas. So you get higher taxes and also worse public services and less freedoms."

State Rep. Gene Wu (D-Houston) wrote on Twitter: "Welcome to Greg Abbott's Texas!" Long Beach, California Mayor Robert Garcia tweeted: "Hey Texans, come over to California to pay lower taxes. And we have great weather."