O'Leary Takes Aim at Tax Proposal

Investor and TV personality Kevin O'Leary isn't holding back on New York lawmaker Zohran Mamdani's latest budget proposal. In a Wednesday post on X, O'Leary slammed Mamdani's call for Gov. Kathy Hochul to raise taxes on the state's highest earners, warning the move could backfire spectacularly.

"Are you kidding me? New York is already the highest taxed jurisdiction in America, that's not a small increase, that's a massive hit," O'Leary wrote.

The issue? Mamdani had warned that without action on taxing the wealthy, New York could face a significant property tax increase instead. But O'Leary sees the whole approach as fundamentally flawed.

"He's not cutting spending, he's just going to tax people into oblivion," he said.

O'Leary's prediction is blunt: higher taxes will simply accelerate the migration to lower-tax states like Florida that's already been underway.

"Mark my words, within 12 to 18 months I'll meet him in Miami and give him 'Real Estate Agent of the Year,' because he's about to push even more New Yorkers out," O'Leary added.

The Budget Shortfall Behind the Proposal

So what's driving this debate? On Tuesday, Mamdani presented New York City's $127 billion preliminary budget for fiscal 2027, which includes a projected $5.4 billion budget gap over the next two fiscal years.

Mamdani's preferred solution is raising taxes on wealthy residents and corporations, though that requires approval from Hochul, who's expressed skepticism about tax increases. Without state approval, Mamdani said he could raise property taxes by 9.5%, which he called a "painful" last resort. The mayor has the authority to raise property taxes without state approval.

He also proposed drawing nearly $1.2 billion combined from the Rainy Day Reserve and the Retiree Health Benefit Trust to help close the gap.

For context, Treasury Secretary Scott Bessent said last November that he attended Mamdani's Oval Office meeting with President Donald Trump, praising Mamdani's campaign but criticizing his policies as outdated. Still, Bessent said the administration wanted the best for New Yorkers.