Kevin O’Leary of Shark Tank revealed he would not make business investments in several Democratic states, including California.
O’Leary explained his reasoning in a yet-to-be-released episode of Sen. Marsha Blackburn’s (R-TN) show Unmuted. According to a transcript reviewed by Townhall, the politics of a state help O’Leary determine where to invest.
“I’m not trying to get involved in the partisanship of this statement. Just a fact, I don’t invest in New York, I don’t invest in Massachusetts, I don’t invest in California. In my mind, those are examples of states that are uninvestable because of bad policy,” O’Leary said. “So, I’m looking for the path of least resistance. If you make it hard for me to make money, I just take my money and go somewhere else.”
When it comes to California and New York, they are among the states with the highest minimum wages at $16 and $15 per hour respectively. New York and California’s rents are also among the most expensive per square foot per year, at over $66 and $45 respectively.
“So, in America today we have this giant competition of states, which is really incredible. The states that have lowered taxes, reduced regulatory environments are getting all the spoils. That’s where people are putting their money,” O’Leary said. “You see these phenomenal success stories like Texas and Florida, and now North Dakota, and others that have made it easy for businesses to grow. Anytime you throw resistance at them, they just go somewhere else.”
California in particular is ranked in the top ten for sales taxes and corporate taxes, according to the Tax Foundation, while New York is in the top ten only for its sales tax.
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O’Leary pointed to Tennessee as an example of a state with “fantastic tax policy, reduced regulatory environment, reduced permitting time.” Any other state that doesn’t implement these business-friendly policies is at risk of “killing jobs,” according to O’Leary.
The Canadian investor started his own venture capital firm O’Leary Ventures last year, over 15 years after his first appearance on Shark Tank where he spends episodes deciding in what small businesses he desires to invest.
