Kevin O'Leary, chairman of O'Leary Ventures and well-known for his appearances on TV's Shark Tank, has voiced concerns over Vice President Kamala Harris' tax policy proposals.

In a recent interview, O'Leary argued that Harris’ plans, particularly her corporate tax hikes, could harm the U.S. economy by driving investment out of the country and reducing opportunities for capital growth by a dramatic degree, as Fox Business reports.

O'Leary warned that Harris' proposed tax policies could have lasting negative effects on both businesses and individuals in the U.S.

The well-known personality highlighted several key aspects of Harris’ tax agenda, including a proposed increase in corporate taxes to 28%, a hike in capital gains taxes, and the introduction of a minimum tax for wealthy households. He argued that these changes would make the U.S. less competitive on the global stage, potentially leading businesses to seek out lower-tax countries.

Concerns Over Corporate Tax Rates

One of O'Leary’s primary concerns is the proposed increase in the corporate tax rate to 28%. He pointed out that this change, combined with state taxes, could push the total tax rate for businesses over 30%. According to O'Leary, such a high tax burden could drive businesses and investments out of the U.S. to countries with more favorable tax environments, such as Ireland.

"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 said during an appearance on Fox Business' The Big Money Show. He cautioned that the U.S. should avoid repeating this mistake, regardless of which party holds power.

O'Leary also referenced the G7 and G20 meetings, using them as a benchmark for global tax competitiveness. He argued that a 28% corporate tax rate would place the U.S. in an uncompetitive position within these global economic forums, jeopardizing the country's economic standing.

Harris' Broader Tax Proposals

In addition to the corporate tax hike, O'Leary criticized Harris' other tax policies. Her proposals include quadrupling the tax on stock buybacks, increasing taxes on capital gains and dividends for households earning over $1 million, and implementing a 25% minimum tax on wealthy households.

O'Leary believes that these policies would not only affect businesses but also impact individual investors and households. "Taxes will go up with their proposals," he remarked, noting that Harris has acknowledged the potential financial impact of her tax agenda.

He further expressed disappointment in what he described as a lack of clarity from Harris on these issues. "This [is] a policy-lite election," O'Leary said, criticizing the lack of detailed policy discussions, particularly on taxes, during the campaign.

Impact on Business Competitiveness

O'Leary emphasized that increasing corporate tax rates could reduce opportunities for capital creation in the U.S. He noted that, as the world’s largest economy, the U.S. currently receives 50% of global capital investment. However, he warned that raising taxes could undermine this position, leading to a potential decline in investments.

"This is the No. 1 economy on Earth," O'Leary said. "We don't want to do anything to change that." He stressed that the U.S. must remain competitive in order to continue attracting capital and driving economic growth.

Higher corporate tax rates, according to O'Leary, could discourage new investments, limit job creation, and stifle innovation. He expressed concern that businesses might move their headquarters or operations to countries with lower taxes, resulting in a loss of jobs and revenue for the U.S. economy.

Potential Effects on Wealthy Households

In addition to the corporate tax concerns, O'Leary warned that Harris' tax policies could have significant effects on wealthy households. The proposed increase in capital gains and dividend taxes, from 20% to 28%, could lead to decreased investments from high-income earners, he argued.

O'Leary also pointed out that the 25% minimum tax on wealthy households would further strain individual finances. He suggested that these policies could disincentivize investment in U.S. markets, ultimately harming economic growth.

O'Leary's Final Thoughts

Throughout his critique, O'Leary emphasized that tax policy is a critical issue for both businesses and individuals. He expressed concern over the uncertainty surrounding the upcoming election, noting that voters and businesses need clarity on these issues in order to make informed decisions.

Despite his concerns, O'Leary acknowledged that the debate over whether the wealthy should pay more in taxes is a recurring theme in U.S. politics. "That's a narrative that goes into every single election cycle," he said. However, he urged policymakers to consider the broader implications of their tax proposals on the economy.

Conclusion: A Call for Caution

Kevin O'Leary's critique of Vice President Kamala Harris' tax proposals centers on concerns over the potential impact on business competitiveness and personal finances.

He warns that increasing corporate taxes could drive investment out of the U.S. and diminish opportunities for capital growth. O'Leary also expressed frustration with the lack of detailed tax policies being discussed during the campaign, urging for more clarity on these crucial issues.

As the U.S. remains the largest recipient of global capital investment, O'Leary calls for caution in implementing policies that could disrupt this position.