O’Leary Ventures Chairman Kevin O’Leary joins ‘Varney & Co.’ to weigh in on California’s proposed billionaire tax, the growing wealth exodus from blue states and why America is falling behind China in the AI power race.
“Shark Tank” investor Kevin O’Leary tore into California Democrats as “terrible managers” over a proposed billionaire wealth tax Thursday, urging state residents to fire their leaders and “hire somebody else.”
“Why don’t the people of California say, ‘We have terrible managers?’” O’Leary asked on “Varney & Co.”
“They never talk about why expenses are going up, why they should cut government. Their services aren’t any better than what I’m getting here in Miami, and we control these things. We have better managers, so get the whacking stick out and do the right thing. Hire somebody else.”
The criticism comes as California lawmakers weigh a one-time 5% tax on residents worth more than $1 billion, a proposal that would apply to individuals who lived in the state as of Jan. 1 and could come due next year, FOX Business’ Connor Hansen reported.
WASHINGTON POST CITES U-HAUL DATA IN CALIFORNIA EXODUS TO ‘PRO-GROWTH’ STATES, SAYS ‘DECLINE IS A CHOICE’
Kevin O’Leary, chairman of O’Leary Ventures, arrives to speak before the Senate Committee on Aging and the House Select Committee on the Chinese Communist Party joint hearing April 9, 2025, in Washington, D.C. (Andrew Harnik/Getty Images / Getty Images)
Supporters of the measure argue it would generate tens of millions of dollars for public programs such as healthcare and education, but opponents warn the levy could force billionaires to liquidate assets or unwind companies to cover the bill, accelerating an exodus of high-net-worth residents and entrepreneurs.
O’Leary said the outcome is already visible.
“When you basically start taxing people for success, it’s un-American,” he said.
CALIFORNIA’S HATRED FOR CAPITALISM IS KILLING THE GOOSE THAT LAID ITS GOLDEN EGG
California Gov. Gavin Newsom speaks during a rally Nov. 8, 2025, in Houston, Texas. Newsom has warned about the negative implications the wealth tax course pose. (Brandon Bell/Getty Images / Getty Images)
“And, as the Constitution provides, competition of states, they move to places like where I am — Miami.”
The proposed measure even raised the eyebrows of California Democratic Gov. Gavin Newsom, who acknowledged the wealth tax is bad economics.
“The evidence is in. The impacts are very real — not just substantive economic impacts in terms of the revenue, but start-ups, the indirect impacts of … people questioning long-term commitments, medium-term commitments,” Newsom said.
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‘Varney & Co.’ host Stuart Varney discusses Bernie Sanders’ new billionaire tax campaign and New York City’s proposed budget plan.
“That’s not what we need right now at a time of so much uncertainty. Quite the contrary.”
He predicted the measure “will be defeated.”
House Republicans have moved to block the proposal at the federal level, introducing legislation that would prevent states from retroactively taxing residents even after they relocate to lower-tax jurisdictions.
FOX Business’ Kristen Altus contributed to this report.
