“He’s the best governor for Texas, but not for Minnesota”

Kevin O’Leary, the investor known for his role on ABC’s “Shark Tank,” has criticized Minnesota Gov. Tim Walz, the recently announced Democratic vice presidential candidate.

In a Fox News interview, O’Leary painted a bleak picture of Minnesota’s economic performance under Walz.

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“He’s not a good manager,” O’Leary said, citing what he described as a decline in job creation in several sectors in Minnesota. “Every other sector is in decline,” he added, arguing that only government-funded services such as health care saw job growth.

However, Walz’s tenure resulted in some job creation efforts. In 2020, the Governor signed the $1.9 billion Local Jobs and Projects Plan, which boosted employment through construction and renovation projects in the wake of the COVID-19 pandemic. Despite this, Minnesota’s job growth lagged behind the national average. According to Bureau of Labor Statistics data cited by ABC News, total nonfarm payrolls in Minnesota grew just 0.5 percent in 2020, compared to 5.8 percent nationally.

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O’Leary’s criticism centered on Minnesota’s tax policies, particularly a recent amendment that adds a 1 percent tax on net investment income over $1 million. This tax is in addition to the state’s existing graduated income tax system, which caps at 9.85 percent for high earners.

Walz’s tax reforms were not limited to high earners. Last year, he passed legislation that included a child tax credit of up to $1,750 for each child 17 and younger in households earning up to about $96,000 a year. He also extended tax breaks for Social Security payments and student loan forgiveness proceeds.

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“It also added a 1% surcharge, 100 basis points, on top of the 9.8% taxes on retirees,” O’Leary said. “And of course they’re leaving the state in droves.”

The investor suggested those policies have led to an exodus of retirees and capital to lower-tax states like Florida, Texas and South Dakota. “He is the best governor for Texas, Florida and North and South Dakota. But not for Minnesota,” O’Leary joked.

Despite the tax increases, Minnesota is projected to end 2025 with a budget surplus of $3.7 billion, according to the ABC News report.

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Still, Minnesota’s tax system has its defenders. In January of this year, the Institute on Taxation and Economic Policy issued a report highlighting Minnesota as one of six states that “reserve the lowest global tax rates for low-income families.”

According to Bloomberg Intelligence analyst Nathan Dean, the debate over Walz’s economic situation comes at an important time, as Democratic presumptive nominee Kamala Harris prepares to lay out her economic plans in a speech on Friday. It is not known how Walz’s approach in Minnesota might influence the Harris administration’s national policy.

The spotlight on Walz’s record will likely intensify as the election approaches. While O’Leary’s criticism offers perspective, voters must weigh it against other economic indicators and policy goals as they evaluate the Democratic ticket.

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This article Kevin O’Leary slams VP pick Tim Walz: ‘He’s the best governor for Texas, but not for Minnesota’ originally appeared on Benzinga.com

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