Kevin O'Leary, the well-known investor and star of TV's Shark Tank, did not hold back in his criticism of Vice President Kamala Harris' proposed tax plan during an appearance on Fox Business Network's Kudlow.

O'Leary unmasked the true nature of Harris' plan, which includes an unrealized capital gains tax, as "un-American" and expressed deep concern over its potential impact on small businesses, the owners of which he emphasized are responsible for creating 62% of American jobs, as Breitbart reports.

Speaking directly to host Larry Kudlow, O'Leary outlined his concerns about how the tax plan would affect business owners, particularly those running smaller operations that are already struggling under current economic pressures.

O'Leary began his critique by pointing out the vital role small businesses play in the U.S. economy. "Of all the suggestions I’ve heard on taxation, I find that the most offensive because just think about America," he said, highlighting that small businesses with between five and 500 employees are the backbone of job creation in the country.

He noted that these businesses face significant challenges due to a complex regulatory environment and stiff competition, yet they persist in contributing to the economy.

O'Leary Questions Tax Burden on Unrealized Gains

The investor then delved into the specifics of the tax proposal, providing a hypothetical example to illustrate his point. He described a scenario where a small business's value grows from $10 million to $20 million over five years.

Under the Harris-Walz plan, O'Leary explained, the owner would be required to pay taxes on the $10 million increase in value, even though no actual money has been realized from the gain.

"Where am I going to come up with three, four million dollars cash that I don’t even have, that I never had?" O'Leary questioned, emphasizing the impracticality of the plan.

He argued that the proposal fails to consider the real-world challenges that small business owners face, especially when it comes to liquidity and cash flow.

Impact on Small Business Owners

O'Leary's concerns did not stop there. He went on to describe the potential consequences for small business owners, using another example of a dry cleaner who might be faced with an $800,000 tax bill four years after opening.

"Look if I am a small business owner, I’m running a dry cleaners and you are telling me I owe you 800 thousand dollars four years after I open that I don’t have," he said, underscoring the strain such a tax could place on small businesses.

The investor did not mince words, repeating his assertion that the proposed tax is fundamentally unfair. "That just makes no sense whatsoever. That’s just so un-American. It’s un-American!" O'Leary exclaimed, making it clear that he sees the plan as a direct threat to the American entrepreneurial spirit.

Harris-Walz Plan Faces Scrutiny

While O'Leary’s remarks were critical, they reflect broader concerns among business owners and economists about the potential impacts of an unrealized capital gains tax.

Critics argue that such a tax could stifle innovation and discourage investment, particularly in the small business sector, which is often the most vulnerable to economic fluctuations and regulatory changes.

The Harris-Walz tax plan, which aims to increase revenue from the wealthy and large corporations, has been a point of contention in political and economic circles.

Proponents argue that it is a necessary step to address income inequality and fund essential government programs, while opponents, like O'Leary, believe it could have unintended negative consequences.

Conclusion

Kevin O'Leary's critique of the Harris-Walz tax plan highlights the deep concerns that many in the business community have about the potential impact on small businesses.

By drawing attention to the challenges that small business owners face in terms of liquidity and cash flow, O'Leary underscores the importance of considering the real-world implications of tax policy.

As the debate over the Harris-Walz plan continues, the perspectives of business leaders like O'Leary will play a crucial role in shaping public opinion and policy decisions.