A renewed push to raise taxes on wealthy individuals and corporations in New York City is drawing criticism from business leaders as policymakers weigh how to balance budgets without driving away investment.

O’Leary Ventures chairman Kevin O’Leary joined FOX Business’ Stuart Varney on “Varney & Co.” to weigh in on proposals targeting high earners, arguing the approach risks undermining the economic activity cities rely on.

“Well, let’s just look at the policy itself and stay out of the emotional aspect of it … These people do not live in the city, they do not burden the city with anything because they’re obviously out-of-towners,” O’Leary said.

His comments come as major firms and high-net-worth individuals increasingly signal a willingness to relocate capital in response to tax policy, a trend that has reshaped migration patterns across several high-tax states in recent years.

O’Leary pointed to the role that outside investors play in funding development and supporting local economies through spending and taxes.

“They spend 5 million plus dollars … Not using any of the city’s services, which is what the city needs, less people putting pressure on it.

“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.