Tags: Gabelli | GOP | republicans | investors

Gabelli: Big GOP Win Would Hurt Investors

Monday, 16 Aug 2010 08:40 AM

GAMCO head Mario Gabelli says a big GOP win this year could create gridlock that will hurt investors.

If the Republicans take the House, “I think the market goes down,” Gabelli told CNBC. “I think the voters are saying, ‘Throw everybody out.’”

“Over the next 90 days, if the belief is that there’s no second round of fiscal stimulus because Republicans take the House,” markets will be negatively affected, says Gabelli.

Gabelli believes that the market does not have a margin of safety in it now, but that after the election, confidence will be renewed in a lot of sectors, largely because the elections could put an end to corporate bashing, which would be positive.

“If the swing in the makeup of the House and the Senate change, that’s going to be an important confidence bolster for corporate America,” Gabelli says, adding that the United States should lower the corporate tax rate “to make us competitive globally.”

Gabelli also says that taxes should increase for the wealthiest, though he stresses the need to raise them judiciously, and that hedge funds and private equity should be taxed at regular rates rather than at the lower capital gains rate.

Bloomberg reports that New York lawmakers unanimously repealed a measure to raise $50 million a year by taxing hedge fund managers who commute into the state.

The plan led Connecticut Governor Jodi Rell to offer relocation assistance to those who move from New York to Connecticut.

“You have my promise to do all I can to help,” Rell said in a July 16 letter to the New York Hedge Fund Roundtable, a trade group.

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GAMCO head Mario Gabelli says a big GOP win this year could create gridlock that will hurt investors. If the Republicans take the House, I think the market goes down, Gabelli told CNBC. I think the voters are saying, Throw everybody out. Over the next 90 days, if...
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2010-40-16
Monday, 16 Aug 2010 08:40 AM
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