“The U.S. economy is facing a dire fiscal dilemma this year that will aggravate an inbound recession, says international investor Jim Rogers, CEO and chairman of Rogers Holdings.
At the end of this year, tax cuts are set to expire while automatic spending cuts are set to kick in at the same time, a combination dubbed by Wall Street as a “fiscal cliff.”
Failure to stop it now could see the combination of tax hikes and spending cuts siphon billions of dollars out of the economy and offset any growth.
Considering that the country is due for a fresh downturn anyway as part of a cyclical trend, failure to address the fiscal cliff could mean disaster for the economy, Rogers says.
The U.S. economy, Rogers says, contracts or slows up ever six years by its nature and the last downturn began at the end of 2007.
“If you are going to raise taxes in 2013 I assure you the economy is going to slow down and slow down a lot,” Rogers tells Newsmax.TV in an exclusive interview. ”
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