Kevin O'Leary Pours Cold Water on Trump Tax Plan as 'Game Changer'
Washington, DC, USA - September, 16, 2020: Form 1040 U.S. Individual Income Tax return next to flag of USA. Trump has proposed a tax waiver on tipped income.
Investor Kevin O'Leary suggested that former President Donald Trump's proposal to cut income taxes generated through tips might be a good political move that may earn him votes, but is unlikely to make any significant economic impact if implemented.
Earlier this month, Trump who is seeking a return to the White House and is the presumptive Republican nominee to face incumbent President Joe Biden in a 2020 rematch, said at a campaign event in Nevada that should he win the election in November he would move to change tax laws to eliminate levies on tipped income. Nevada is a key competitive state recent polling shows.
O'Leary, who stars on ABC's investment reality television show Shark Tank, said in a recent interview on Fox News that the plan to eliminate taxes on tips was likely to have a bigger political impact than an economic one.
"That was really interesting for Nevada, which is a very, very pro kind of individual entrepreneur, kind of economy where you make your money on tips and obviously you're dealing with taxes," O'Leary said. "This has been a debate for a very long time, particularly in the gig economy. It's a smart political move, it's going to help a lot of people that are self-employed, if you think about it that way and that's what I see it for."
He added: "Is it a massive economic move? Not really. It's a...it's a good rounder, kind of, 'let's get some votes in states where we don't think we're gonna win.' I get it. I totally get it. It's not a bad move, but it's not a it's not a big game changer for American competition."
Newsweek contacted O'Leary's media representative for comment via email on Tuesday.
Trump said at the Las Vegas rally that an economy that relies heavily on tourism, leisure and hospitality sectors, signaled that the tax waiver on tips would be a key priority for him if he makes it to the White House again.
"For those hotel workers and people that get tips, you're going to be very happy because when I get to office, we are going to not charge taxes on tips, people making tips," Trump said in his speech. "We're going to do that right away, first thing in office."
Newsweek contacted Trump's campaign for comment via email on Tuesday.
O'Leary also indicated that any raising of corporate taxes would scare away capital from the country.
"You can't tax companies into oblivion, they just move," he said in the Fox interview. "Companies aren't people, okay? They're entities."
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