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Gartman Slams Europe's 'Untoward' Tax Decision

Europe has chosen the wrong way to cut debt and unfortunately the United States will follow, Dennis Gartman, author and publisher of the Gartman Letter, told CNBC Wednesday.

Governments in the European Union have started to cut spending and increase taxes in a bid to reduce budget deficits after markets forced Greece to borrow money from the International Monetary Fund and the European Union over worries about the country's bulging debt.

"I was very disappointed when all of the European governments decided to do what I thought was the worst of all worlds, raise taxes and cut spending," Gartman said in a telephone interview.

"Taking out all stimulus away from the economy I think it's an untoward and ill-advised decision," he added. (Click for full interview)

Gartman, who characterizes himself as an "obvious supply-sider," said history shows that higher taxes have almost always resulted in lower revenue.

The United States will follow the same path, because it is "politically correct," he added.

Tax cuts implemented during President George W. Bush's administration should stay to help the economy grow, but they will probably not, Gartman also said.

Contact Europe: Economy

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