Kevin O’Leary, the investor known for his role on ABC's “Shark Tank,” has aimed criticism at Minnesota Gov. Tim Walz, the recently announced Democratic vice presidential candidate.
In a Fox News interview, O’Leary painted a bleak picture of Minnesota’s economic performance under Walz’s leadership.
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"He is not a good manager," O'Leary said, citing what he described as a decline in job creation across multiple sectors in Minnesota. "Every other sector is in decline," he added, arguing that only government-funded services like health care have seen job growth.
However, Walz’s tenure has seen some job creation efforts. In 2020, the Governor signed the $1.9 billion Local Jobs and Projects Plan, which boosted employment through construction and renovation projects following the COVID-19 pandemic. Despite that, Minnesota’s job growth has lagged behind national averages. According to data from the Bureau of Labor Statistics cited by ABC News, total nonfarm payrolls in Minnesota have grown by just 0.5% since 2020, compared to 5.8% nationwide.
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O’Leary’s critique centered on Minnesota’s tax policies, particularly a recent change that adds a 1% tax on net investment income over $1 million. This tax is on top of the state’s existing graduated income tax system, which caps at 9.85% for high earners.
Walz’s tax reforms have not been limited to high earners. Last year, he enacted legislation that included a child tax credit worth up to $1,750 for each child 17 years old and younger in households earning up to about $96,000 a year. He also expanded tax exemptions for Social Security payments and income from student loan forgiveness.
“He’s also added a surcharge of 1%, 100 basis points, on top of 9.8% taxes on retiring individuals,” O’Leary said. “And, of course, they’re leaving the state in droves.”
The investor suggested that those policies have led to an exodus of retirees and capital to states with lower tax rates, like Florida, Texas, and South Dakota. “He’s the best Governor for Texas, Florida, and North and South Dakota. But not for Minnesota,” O’Leary quipped.
Despite the tax increases, Minnesota is projected to end 2025 with a $3.7 billion budget surplus, according to the ABC News report.
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Still, Minnesota’s tax system has its defenders. In January of this year, the Institute on Taxation and Economic Policy issued a report highlighting Minnesota as one of only six states that “reserve their lowest overall tax rates for low-income families.”
According to Bloomberg Intelligence analyst Nathan Dean, the debate over Walz’s economic record comes at an important time, as presumptive Democratic nominee Kamala Harris prepares to issue her economic plans in a speech on Friday. How Walz’s Minnesota approach might influence the Harris administration’s national policy is unknown.
The spotlight on Walz’s record will likely intensify as the election approaches. While O’Leary’s critique offers one perspective, voters must weigh it against other economic indicators and policy goals as they assess the Democratic ticket.
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