Vice President Kamala Harris’s tax policies could severely harm the U.S. economy, particularly in terms of capital growth and sustaining the American dream, according to Shark Tank star Kevin O’Leary. The O’Leary Ventures chairman cautioned the Democratic presidential nominee about the “multiple effects” her tax policies could have, warning that they would negatively impact not only businesses but also Americans on a personal level.
“Taxes will go up with their proposals,” he said on FOX Business’ “The Big Money Show” Thursday, also adding, “She’s admitting that she’s not denying it. That’s a debate that’s going on in terms of the classic, ‘make the rich pay their fair share,’” he continued. “That’s a narrative that goes into every single election cycle.”
Both Trump and Harris have outlined new tax provisions in their 2024 plans, but Harris’ campaign website features proposals that include quadrupling the tax on stock buybacks, implementing a 25% minimum tax on wealthy households, and raising taxes on capital gains and dividends for households earning more than $1 million, increasing the rate from 20% to 28%. But O’Leary, also known as “Mr. Wonderful,” emphasized his concerns about the potential consequences 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.” O’Leary further warned that higher corporate tax rates could potentially push businesses and investments out of the U.S., reducing the country’s economic competitiveness. “Last time we did this to ourselves, we started to see dislocation of headquarters moving to places like Ireland and other lower tax jurisdictions,” he explained. “That, we shouldn’t do. That’s a mistake for either party. That’s a huge mistake.”
O’Leary referenced the G7 and G20 meetings, where global leaders gather to discuss key geopolitical issues, to further clarify his position on the potential economic impact of higher corporate tax rates. “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.”
“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 said, also emphasizing that higher corporate taxes create fewer opportunities to create 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,” he added.
Disclaimer: This article may contain commentary which reflects the author’s opinion.