Kevin O'Leary Warns Kamala Harris' Tax Plan Could Crush U.S. Businesses – Here's Why He Thinks It's a Threat to the American Economy

“Shark Tank” star Kevin O’Leary recently weighed in on the serious implications of Vice President Kamala Harris' proposed tax plan, which he said would spell doom for American businesses and the economy. Appearing on Fox News’ “The Story with Martha MacCallum," O'Leary didn't hold back in his critique, referring to the plan as a direct threat to the American dream.

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Harris proposed a 25% tax on unrealized capital gains for those earning over $100 million and an increase in the corporate tax rate from 21% to 28%. O’Leary believes these changes would severely hurt the U.S. economy and make American businesses less competitive globally.

"The idea of raising capital gains tax to this level is essentially making America uncompetitive," O'Leary stated. "We're the world's number one economy, and much of that success comes from foreign capital choosing to invest here because we're competitive. But if we suddenly increase our capital gains tax and corporate tax rate, it sends a message that America is no longer the best place to invest."

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"When you make yourself so uncompetitive compared to other economies, you end up at the bottom of the list,” said O’Leary. "Look at what happened when corporate tax rates were above 28% – companies started moving to places like Ireland. We've tried this before, and it doesn't work. This plan is not just bad; it's incredibly bad policy."

He was most concerned about what it would do to American entrepreneurs, cautioning that such tax changes would push businesses out of the country. “We do not want to punish American entrepreneurs,” emphasized O’Leary. 

“The number one export from America isn’t a product or service – it's the American dream. People from all over the world come here for that dream. If we start implementing policies that drive people away, we will have a real problem on our hands.”

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Aside from his concerns about taxes, O'Leary also criticized Harris for her proposal to impose a federal prohibition on what she termed “price gouging” by grocery stores. He argued that such a plan is not only unworkable but fundamentally un-American. 

“It’s a very populist idea, but it’s impossible to implement,” O’Leary said. “It would never pass Congress. These kinds of ideas might look good in the polls, but they haven't been properly scrutinized. This was tried in the ’70s in America and didn't work. It doesn't work in Venezuela or North Korea, either. It's just not how the American economy functions.”

Michigan Gov. Gretchen Whitmer supports price regulation talks, telling NBC it aligns with Kamala Harris’s values to "keep more money in Americans' pockets."

Meanwhile, Northwestern University economist Michael Sinkinson echoed concerns, saying, “It’s tough to design a price control that isn't gameable.” He added, “What's the right benchmark for these controls?”

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O’Leary also disagreed with Harris’s proposal to build three million homes nationwide and give first-time homebuyers $25,000 in down-payment assistance. He said that plan would raise home prices even more. “If you give every buyer $25,000, the seller will raise the price. This is the worst policy I’ve ever heard, and anyone in real estate knows it won't work,” O’Leary argued.

O’Leary concluded that Harris’s tax plan would do far more harm than good. “These ideas are just not realistic,” he said. “They’re bad for business, bad for the economy, and ultimately bad for the American people."

Ernie Tedeschi, former member of President Biden's Council of Economic Advisers and now economics director at Yale's Budget Lab, recently told the Wall Street Journal that while food and beverage retailers have kept high-profit margins post-pandemic, other sectors, like clothing, haven’t seen the same. "We need to figure out what's happening," Tedeschi said.

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