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By Omar Mohammed
Reporter, Economy & Finance
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Kevin O'Leary, a star of the show Shark Tank on ABC, suggested that Democratic vice presidential candidate and Minnesota Governor Tim Walz has instituted high taxes in his state that have led some people to leave the state.
In an interview with Fox News, O'Leary said that Minnesota's raising of taxes on residents who invest more than $1 million has led to some people moving to other parts of the country.
"The state tax there is 9.8 percent then Walz put on a super tax for people that are investing more than $1 million. So all of his retirees have moved out of the state, billions of dollars," he told Fox News.
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O'Leary went on to claim that those retirees have decamped to places like Florida and Texas. Since the pandemic, these southern states have experienced an influx of migration from other parts of the country.
Newsweek contacted the Harris campaign for comment via email on Monday.
Minnesota in the 2023 legislative session passed some changes to the state's tax code, including the introduction of a 1 percent new tax on net investment income of more than a million dollars.
"This new tax is imposed on individuals, estates, and trusts with more than $1 million of net investment income in the tax year," according to the Minnesota Department of Revenue.
The midwestern state has what is described as a graduated income tax system where residents are taxed based on their income. Individuals fall under four different tax rates—5.35 percent, 6.80 percent, 7.85 percent to 9.85 percent, according to an analysis by AARP. The new 1 percent tax will be in addition to the 9.85 percent rate for high earners starting in the 2024 tax year.
O'Leary in the interview with Fox suggested that the tax on high earners may move capital to states with lower rates like Florida, Texas and South Dakota.
But other analysts have suggested that Minnesota's tax system is beneficial to low-income families.
"Nationally, comparatively high tax rates on low-income families remain the norm, despite recent steps to lower taxes for this group by bolstering refundable tax credits," according to a recent report by the Institute on Taxation and Economic Policy. "Only six states and the District of Columbia now reserve their lowest overall tax rates for low income families. Those states are Maine, Minnesota, New Jersey, New Mexico, New York, and Vermont."
It's unclear how Walz's approach to taxes will translate to a potential Kamala Harris-led administration. The presumptive Democratic nominee for president has yet to articulate fully her tax plan should she win the election in November. Over the weekend, Harris suggested that she plans to unveil her economic plans in the coming days.
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