House Republicans move to block California’s billionaire tax as $1 trillion flees state
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 on 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 January 1 and could come due next year, Gxstocks' Connor Hansen reported.
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)
Supporters of the measure argue it would generate tens of millions of dollars for public programs such as health care 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 on 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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"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.
Gxstocks' Kristen Altus contributed to this report.
