In New York City, a renewed effort to increase taxes on affluent individuals and corporations is stirring debate. Business leaders express concern as policymakers deliberate on budget solutions that won’t deter investments.

Kevin O’Leary, chairman of O’Leary Ventures, shared his perspective on “Varney & Co.” with FOX Business’ Stuart Varney. He criticized proposals aimed at high earners, suggesting that such measures could weaken the economic activities essential to urban prosperity.

“Let’s focus purely on the policy,” O’Leary remarked, steering clear of emotional arguments. “These individuals aren’t residents; they don’t impose on city resources since they’re primarily non-locals.”

His remarks coincide with a growing trend of major companies and wealthy individuals considering moving their assets due to tax policies, a shift that has altered migration patterns in several states with high tax rates.

O’Leary highlighted how external investors contribute by funding projects and boosting local economies through their expenditures and tax payments.

“They invest over 5 million dollars, without burdening city services,” he noted, emphasizing that this reduces strain on the city’s infrastructure.

“They pay taxes, and they pay maintenance jobs to maintain the buildings,” he said.

He argued that policies targeting those investors risk discouraging activity that cities depend on.

“Let me count how many ways this policy is stupid … You want more of these people … That don’t live here, pay taxes, pay maintenance, create jobs … And don’t use the city’s services, that’s sheer blind stupidity, that policy,” O’Leary said.

The debate highlights broader questions about how cities can balance revenue needs with maintaining a competitive environment for investment and growth.