Kevin O'Leary calls Zohran Mamdani's plan 'beyond insane' — can't believe it was considered
America's wealthiest people have been enjoying tax cuts under the Trump administration, but one year into his term, states are proposing taxes on the rich. One of New York City's Mayor Zohran Mamdani’s biggest campaign promises was to raise income taxes on the wealthy. However, to get that done, the Mayor must convince Gov. Kathy Hochul to be on board as well. If that doesn’t happen, Mamdani has proposed a whopping 9.5% on property taxes. "Shark Tank" judge and investor Kevin O’Leary couldn’t believe that this was even considered.
“What he’s proposing is beyond insane,” he said, as per a report in Moneywise. “This is bat poopoo crazy.” Mamdani has acknowledged that this would truly be a financial burden for middle-class New Yorkers, who, as per O’Leary, will be taxed into oblivion. Mamdani has explained that this tax hike would affect New Yorkers with a median income of $122,000. This tax change will affect more than 3 million residential units and over 100,000 commercial buildings.
O’Leary had an issue with Mamdani’s tax hike proposal, as it would mean a lot of New Yorkers would be moving to where he resided, which is Miami Beach. “Probably sometime next year, within 12 to 18 months, I will meet him in Miami and give him the real estate agent of the year award,” he said. “I live in Miami Beach. Everybody from New York, New Jersey, and Massachusetts is moving into my neighborhood. I’m pissed off, and this guy's just doing more of it,” O'Leary added.
The problem Mamdani will face when he raises income taxes for the wealthy is that a lot of them do not earn their money from wages. Millionaires and billionaires build their wealth through assets. As the value of these assets increases, so does their net worth. Capital gains are typically taxed at lower rates than regular income, and unless the assets are sold, there is no obligation to pay taxes.
One way in which the rich could be forced to pay taxes is through a wealth tax on assets. That is exactly what is being proposed in California, and as a result, a lot of famous billionaires are leaving the city. The city has planned a 5% wealth tax on individuals with assets over $1 billion. As a result, the likes of Google co-founders Larry Page and Sergey Brin, and Meta CEO Mark Zuckerberg are reportedly leaving the state.
Oscar-winning filmmaker Steven Spielberg is also leaving the state and going to Mamdani’s New York. On January 1, Spielberg and his wife, Kate Capshaw, officially became residents of the San Remo co-op on Central Park West, which has previously housed several celebrities. Additionally, Spielberg's production house, Amblin Entertainment, also relocated from Hollywood that same day.
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