Kevin O’Leary Critiques California Leaders as ‘Ineffective Managers’ Amid Wealth Tax Controversy
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.
On a recent episode of “Varney & Co.,” investor Kevin O’Leary criticized California Democrats as “terrible managers” in light of a proposed billionaire wealth tax. He urged Californians to reconsider their leadership, stating, “Why don’t the people of California say, ‘We have terrible managers?’”
O’Leary expressed frustration over rising expenses and the lack of government efficiency, comparing California’s services unfavorably to those in Miami, where he resides. “They never talk about why expenses are going up, why they should cut government,” he said. “We have better managers, so get the whacking stick out and do the right thing. Hire somebody else.”
This criticism comes as California lawmakers consider a one-time 5% tax on individuals with a net worth exceeding $1 billion. This tax would apply to residents who lived in the state as of January 1 and could be due as early as next year, according to FOX Business’ Connor Hansen.
Kevin O’Leary, Chairman of O’Leary Ventures, arrives to speak before a Senate Committee on Aging and House Select Committee on the Chinese Communist Party joint hearing on April 9, 2025 in Washington, DC. (Andrew Harnik/Getty Images / Getty Images)
Proponents of the wealth tax argue it could generate significant revenue for public services like healthcare and education. However, critics warn that such a tax could compel billionaires to liquidate assets or dismantle businesses to meet their tax obligations, further accelerating the outflow of wealthy residents and entrepreneurs from the state.
O’Leary emphasized the negative implications of taxing success, stating, “When you basically start taxing people for success, it’s un-American.”
CALIFORNIA’S HATRED FOR CAPITALISM IS KILLING THE GOOSE THAT LAID ITS GOLDEN EGG
California Gov. Gavin Newsom speaks during a rally on Nov. 8, 2025, in Houston, Texas. Newsom has warned about the negative implications the wealth tax could pose. (Brandon Bell/Getty Images / Getty Images)
Even California’s Democratic Governor Gavin Newsom has expressed concerns about the economic ramifications of the proposed wealth tax. He noted, “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.”
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He further stated, “That’s not what we need right now, at a time of so much uncertainty. Quite the contrary.” Newsom predicted that the measure “will be defeated.”
In response to the proposed tax, House Republicans have introduced legislation aimed at preventing states from retroactively taxing residents who relocate to lower-tax jurisdictions.
FOX Business’ Kristen Altus contributed to this report.
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.
On a recent episode of “Varney & Co.,” investor Kevin O’Leary criticized California Democrats as “terrible managers” in light of a proposed billionaire wealth tax. He urged Californians to reconsider their leadership, stating, “Why don’t the people of California say, ‘We have terrible managers?’”
O’Leary expressed frustration over rising expenses and the lack of government efficiency, comparing California’s services unfavorably to those in Miami, where he resides. “They never talk about why expenses are going up, why they should cut government,” he said. “We have better managers, so get the whacking stick out and do the right thing. Hire somebody else.”
This criticism comes as California lawmakers consider a one-time 5% tax on individuals with a net worth exceeding $1 billion. This tax would apply to residents who lived in the state as of January 1 and could be due as early as next year, according to FOX Business’ Connor Hansen.
Kevin O’Leary, Chairman of O’Leary Ventures, arrives to speak before a Senate Committee on Aging and House Select Committee on the Chinese Communist Party joint hearing on April 9, 2025 in Washington, DC. (Andrew Harnik/Getty Images / Getty Images)
Proponents of the wealth tax argue it could generate significant revenue for public services like healthcare and education. However, critics warn that such a tax could compel billionaires to liquidate assets or dismantle businesses to meet their tax obligations, further accelerating the outflow of wealthy residents and entrepreneurs from the state.
O’Leary emphasized the negative implications of taxing success, stating, “When you basically start taxing people for success, it’s un-American.”
CALIFORNIA’S HATRED FOR CAPITALISM IS KILLING THE GOOSE THAT LAID ITS GOLDEN EGG
California Gov. Gavin Newsom speaks during a rally on Nov. 8, 2025, in Houston, Texas. Newsom has warned about the negative implications the wealth tax could pose. (Brandon Bell/Getty Images / Getty Images)
Even California’s Democratic Governor Gavin Newsom has expressed concerns about the economic ramifications of the proposed wealth tax. He noted, “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.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
He further stated, “That’s not what we need right now, at a time of so much uncertainty. Quite the contrary.” Newsom predicted that the measure “will be defeated.”
In response to the proposed tax, House Republicans have introduced legislation aimed at preventing states from retroactively taxing residents who relocate to lower-tax jurisdictions.
FOX Business’ Kristen Altus contributed to this report.
