Kevin O'Leary is warning about how expensive running a business in America is becoming. In a recent Fox Business segment, O'Leary discussed how complicated rules and taxes are making it harder for companies across industries.
He also expressed hope that leaders like Elon Musk and Vivek Ramaswamy could bring about change by simplifying taxes and reducing unnecessary regulations.
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"If they just solved for simplifying tax and deregulated the economy, just say 30%, pulled some of that regulation out," O'Leary said. According to O'Leary, the costs associated with staying compliant – like paying auditors, consultants and lawyers – are going up by about 20% yearly. "The cost that I have to spend each year just to remain compliant goes up at about 20% a year between all the consultants, the auditors, the lawyers and the changing rules of regulation," he shared.
O'Leary explained that he operates across all 11 sectors of the economy and has never seen such an escalation in costs as he has in the last five years. He’s not alone either; many other business leaders share his concerns. He mentioned that if you spoke to the CEOs of the S&P 500 companies, they would tell you these regulatory costs are among the most rapidly growing expenses they face.
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“There’s lots of room for efficiency, lots of room for action on that,” O’Leary said. By pulling back on the red tape, businesses could save money and use it for other purposes, such as expanding their operations, hiring more staff or lowering consumer prices.
O’Leary hopes that by bringing in business-minded leadership – people like Elon Musk, who has already shown his ability to cut through inefficiencies at Twitter or Vivek Ramaswamy, known for his straightforward approach – the U.S. could reduce these burdens and give companies some much-needed breathing room.
However, not everyone is convinced that Musk and Ramaswamy are the right leaders for this challenge. Critics argue that while Musk’s methods at Twitter have been effective in certain areas, they have also been controversial and have led to disruptions. Some doubt whether his approach would translate well to government-level regulation involving a different scale and set of complexities.
Similarly, while appealing, Ramaswamy’s straightforward approach may lack the nuance required to navigate the intricacies of federal regulations. There are concerns that oversimplification could lead to unintended consequences, potentially creating more issues than solutions.
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