O'Leary Blasts NYC 'Soak the Rich' Tax Plan as Economic Suicide

O'Leary Ventures Chairman Kevin O'Leary lambasted New York City's proposed tax increases on high earners and businesses during a May 2026 appearance on FOX Business' 'Varney & Co.,' labeling the plan 'sheer blind stupidity.' He defended wealthy investors as essential engines of economic activity, arguing that targeting them risks starving cities of the investment they desperately need.[1] The controversy centers on initiatives led by NYC Mayor Zohran Mamdani, whose 'Soak the Rich' agenda aims to close widening budget shortfalls. Key proposals include cutting a popular tax credit used by thousands of small and medium-sized businesses—particularly pass-through entities—to offset federal SALT deduction limits, providing city-level rebates worth up to $7 billion for filers earning $1 million or more in 2025. Business owners counter that this credit benefits mom-and-pop shops and middle-class earners making $300,000 to $500,000 annually, not just the ultra-wealthy.[2] Mamdani's package also features a revived pied-à-terre tax on secondary residences worth $5 million or more, reducing the multiple dwelling tax credit from 100% to 75%, and other measures to squeeze high-net-worth individuals. Proponents frame these as fair contributions from the top 1%, but critics like O'Leary warn they will prompt capital flight to lower-tax jurisdictions, echoing trends seen in states that adopted pass-through entity taxes post-2017 federal reforms.[1][2] O'Leary, appearing with host Stuart Varney, emphasized that investors—often derided as 'the rich'—generate the jobs and growth policymakers tout. 'These are the people who put money at risk in your city,' he said, predicting the policies would undermine NYC's recovery from post-pandemic fiscal strains amid ongoing budget debates in Albany.[1] The push comes as New York grapples with persistent deficits, with Mamdani's plans drawing support from progressive assembly members favoring graduated taxes on luxury properties. Business advocates, however, highlight that similar hikes in the past correlated with outflows of over 500,000 residents and billions in lost revenue since 2020, per migration data. O'Leary's broadside amplifies warnings from groups like the Partnership for New York City, which urge balancing budgets through spending restraint rather than tax hikes.[2]