Investor Kevin O’Leary criticized California’s tax policies and management during an exchange with Stuart Varney, arguing that high taxes and rising expenses are driving residents and businesses out of the state.

Varney opened the discussion by asking, "What's you analysis?"

O’Leary responded by questioning the long-term impact of taxing higher earners.

"It may be popular. The problem with it is you're already seeing the outcome when you basically start taxing people for success. It's un American, and they, as the Constitution, provides competition of states, they move to places like where I am, Miami."

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He said the migration from states like California to Florida has become noticeable.

"In fact, it's getting so bad here Stuart, I can't get over the bridge to dinner at night, the traffic's insane, and we can also ask Mondavi to stop too, because He's killing me with all these guys from New York."

O’Leary argued that Californians should evaluate their state government the way a business owner evaluates leadership when performance declines.

"But having said that, here's why this narrative doesn't really make sense for Californians. Why wouldn't they ask, let's say I have a company and revenues are going down and my expenses are going up. I go to the CEO and say, Why is my business falling apart like this? Why is it that everything is upside down?"

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He compared declining state revenues and rising costs to a failing company.

"My revenues are going down in this case because people are leaving the state, and all my expenses are going up because you can't manage the place. You're a terrible manager. Why don't I just fire you and hire somebody else? And I do that all the time."

O’Leary suggested voters should apply the same logic to state and municipal leadership.

"So why don't the people of California say we have terrible managers? I don't care if to look at the municipal level or the state level, they never talk about why expenses are going up, why they should cut government."

He contrasted services in California with what he says he receives in Florida.

"Their services aren't any better than what I'm getting here in Miami. And we control these things. We have better managers."

O’Leary concluded by urging voters to replace leaders they view as ineffective.

"So get the whacking stick out and do the right thing and hire somebody else. This is nothing to do with politics. This is just bad management. The whacking stick is the solution."

The exchange centered on fiscal policy, interstate migration, and the role of leadership in managing state finances, with O’Leary framing the issue as one of management rather than partisan politics.

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