Kevin O’Leary, one of the investors on Shark Tank, recently shared that he has no plans to invest in certain Democratic states, including California.
O’Leary shared his reasoning during a forthcoming episode of Sen. Marsha Blackburn’s (R-TN) show, Unmuted. As per the transcript examined by Townhall, O’Leary considers the political landscape of a state as a factor in determining his investments.
In regards to this statement, I would like to refrain from taking sides. However, it is a simple fact that I do not invest in New York, Massachusetts, or California. I consider these states to be uninvestable due to their unfavorable policies,” O’Leary explained. “Instead, I seek out opportunities that offer the least challenges. If it becomes difficult for me to generate profits, I simply redirect my investments elsewhere.”
California and New York have some of the highest minimum wages in the United States, with rates of $16 and $15 per hour, respectively. Additionally, the cost of renting in these states is also significantly higher compared to other areas, with average rates of over $66 and $45 per square foot per year in New York and California, respectively.
“In today’s America, there is an extraordinary competition among states. It’s remarkable to see how the states that have implemented tax cuts and reduced regulations are reaping the rewards. These are the places where people are choosing to invest their money,” O’Leary emphasized. “We witness impressive success stories coming out of states like Texas, Florida, and even North Dakota, where the business-friendly environment has made it effortless for companies to thrive. Whenever obstacles arise, these businesses simply relocate elsewhere.”
According to the Tax Foundation, California is ranked in the top ten for sales taxes and corporate taxes. On the other hand, New York is only in the top ten for its sales tax.
According to O’Leary, Tennessee serves as an exemplary case of a state that has embraced exceptional tax policies, a streamlined regulatory environment, and reduced permitting time. O’Leary warns that any state failing to adopt such business-friendly measures runs the risk of jeopardizing job creation.
The Canadian investor, Kevin O’Leary, launched his own venture capital firm called O’Leary Ventures in the past year. This move came more than 15 years after his initial appearance on Shark Tank, where he carefully evaluates and invests in various small businesses showcased on the show.