Kevin O'Leary has seemingly thrown his support behind President Donald Trump's proposal to eliminate capital gains tax on primary home sales, calling it a "common sense" move to help American families build wealth.
What Happened: On Tuesday, O'Leary, also known as "Mr. Wonderful," posted a video on X, formerly Twitter, praising Trump's tax plan while appearing on Fox News.
He argued that removing capital gains tax on home sales would allow young families to trade up without being penalized.
"No capital gains tax on your primary home means young families can grow without getting punished," O'Leary posted. "Don't tax them to death when they trade up. It's common sense."
In the video shared, he said, "If you want people to take on ownership and mortgages… they have to be able to trade up. They can’t get whacked for a third of their value."
Why It's Important: His comments came just hours after Trump said his administration is considering a federal exemption on capital gains from home sales.
“If the Fed would lower the rates, we wouldn’t even have to do that,” Trump told reporters at the White House, adding, “But we are thinking about no tax on capital gains on houses.”
Rep. Marjorie Taylor Greene (R-Ga.) welcomed Trump's comments, saying they align with her proposed No Tax on Home Sales Act. "You worked for it. You should keep it. Let's get this bill passed!" she wrote on X.
The proposal comes amid a housing affordability crisis, with mortgage rates and home prices at multi-year highs.
Earlier this month, Moody's chief economist Mark Zandi warned that the U.S. housing market is flashing a "red flare," with home sales at a low and builders pulling back due to high mortgage rates and rising costs. He predicted further weakness, including potential drops in home prices, new construction and completions.
Previously, economist Craig Shapiro also called for a national housing policy overhaul, criticizing the sector as over-subsidized and under-scrutinized.
Photo Courtesy: Kathy Hutchins on Shutterstock.com
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