Desantis vs. Newsom: Florida Sues California Over Tax Scheme That Punishes Out-of-State Success

Supreme Court Showdown Over California’s Corporate Tax Rule Highlights Growing Economic Rivalry Between States

🕐 Read Time: 6 minutes

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Florida Attorney General Files Another Lawsuit Against Another Unconstitutional California Law

The long-running rivalry between Florida Governor Ron DeSantis and California Governor Gavin Newsom has now lead to another lawsuit filed with the U.S. Supreme Court. Florida is seeking to haul California into court over what it calls an unconstitutional tax grab, framing the case as the latest front in a clash of visions—one built on low taxes and growth, the other on heavier regulation and revenue extraction.

Florida Attorney General James Uthmeier filed a motion for permission to submit a Bill of Complaint (which actually included a Bill of Complaint) against California, arguing that the state’s corporate-tax apportionment punishes companies that move or expand outside its borders. The filing, which the Court must allow before the case proceeds, targets California’s “Special Rule” on taxing out-of-state profits as unconstitutional.

It’s the second time in less than two weeks that Uthmeier has brought California before the nation’s highest court. His office says the rule violates constitutional safeguards on commerce and due process and widens the divide between high-tax and low-tax states.

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The rest of this column really goes into more detail about the lawsuit, the policy issue involved, and, of course, political analysis..

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