While many Americans are celebrating President Barack Obama's victory over Republican presidential candidate Mitt Romney, a few Wall Street analysts warn that now is the time to get serious about the economy.
Financial legend Jim Rogers, for example, said during an Election Day interview with CNBC that there is little reason to be euphoric over the outcome of the election.
“I’m seeing and listening to everybody talk about politics instead of what are we going to do and what’s going to happen to the country,” Rogers said, “I tell you, this is not going to be good for the country. It’s more of the same old stuff. More money printing, more high debt … if they raise taxes, which everybody seems to think they will, raising taxes has never been good for the economy.”
“We should be worried about 2013 and 2014,” he added. “I see a lot of happy people tonight. Call them up in 2013. Call them up in 2014.”
And on Wednesday morning, Pimco co-founder Bill Gross (“Mr. Bond”) also said that a second term for President Obama will naturally involve higher taxes.
"Obama ran on a higher-tax agenda," Gross said during a "Squawk Box" interview.
"Marginal income taxes go from 35 to 40 (percent), capital gains from 15 to 20, dividends from 15 to who knows what ... so they could go high, high and higher," added, noting that the election gives the president a "a larger bargaining chip" to push Republicans into accepting higher tax rates.
Gross and Rogers are not alone in their belief that America's economic future will involve tax increases.
"We believe taxes are going to go up," said Ron Florance, managing director of investment strategy at Wells Fargo Private Bank."If you can, pay taxes this year vs. next year. We are recommending doing that. Normally we encourage delaying taxes."
Florance notes that the dividend tax isn’t the only thing that will see an increase.
"The estate tax environment is going to change dramatically," he said. "You have six weeks to get this done. The estate taxes will not be this favorable for the rest of our natural lives. So for clients in that bracket, this is a pretty critical six weeks."
Follow Becket Adams (@BecketAdams) on Twitter
- Financial Guru Jim Rogers: ‘When I Look Ahead, I Don’t See Good Things’ & Neither Candidate Will Change That
- Noted Analyst: The U.S. Is Like a Meth Addict When It Comes to Debt & We Could End Up Like Greece Soon
Front page photo source courtesy the AP.