Vice President Kamala Harris's proposed tax policies could significantly harm the U.S. economy, particularly in terms of capital growth and the American dream, according to "Shark Tank" star Kevin O'Leary.
The O'Leary Ventures chairman highlighted the "multiple effects" these policies could have, affecting not only businesses but also Americans on a personal level.
"Taxes will go up with their proposals," O'Leary stated on FOX Business's "The Big Money Show." He added, "She's admitting that, she's not denying it."
He emphasized that the debate over making the rich "pay their fair share" is a recurring theme in every election cycle. "That's a narrative that goes into every single election cycle," he said.
Both former President Donald Trump and Vice President Harris have outlined new tax provisions in their 2024 plans. Harris's campaign website lists policies that include quadrupling the tax on stock buybacks, imposing a 25% minimum tax on wealthy households, and increasing taxes on capital gains and dividends for households making more than $1 million from 20% to 28%.
O'Leary, known as "Mr. Wonderful," specifically pointed out the implications of Harris setting the corporate tax rate at 28%. "The more concerning one for the economy, not just personal taxes, is corporate tax rates. That, at her proposed 28%, would put the U.S. economy in an uncompetitive position," he explained.
He warned that higher corporate tax rates could drive businesses and investments out of the United States. "Last time we did this to ourselves, we started to see dislocation of headquarters moving to places like Ireland and other lower tax jurisdictions," O'Leary noted. "That, we shouldn't do. That's a mistake for either party. That's a huge mistake."
Using the G7 and G20 meetings as examples—where global leaders discuss top geopolitical issues—O'Leary further clarified his concerns. "We're right in the middle, right now, in the G7, G20. So if all of a sudden we start charging a 28% corporate tax rate, plus add on state taxes, in some cases, you're in the 30 percentile, and that's just not competitive anymore in terms of the G20 or G7," he said.
"That's, to me, the most horrific outcome, and I'm very nervous about that," O'Leary added.
Despite who wins the White House in November, O'Leary claimed that policy "uncertainty" remains a major concern. "This is a policy-lite election. I'm disappointed that Harris doesn't give us more policy specifically on taxes, specifically on corporate taxes. I need to know that. So does everybody else," he stated, emphasizing that higher corporate taxes create fewer opportunities to generate capital.
"Remember, this is the No. 1 economy on Earth... 50% of capital invested worldwide comes here. We don't want to do anything to change that," O'Leary concluded.
News Source: Fox Business