Recession Watch: Is The Worst Really Over?

Ad Feedback

New economic numbers are pointing to signs the economy may be turning around, but with a record deficit and unemployment numbers still high, White House officials say middle-class tax hikes could be in the future.

Last summer on the campaign trail, Obama promised the middle class would see no new taxes.  Now, members of the Obama administration say, "it's never a good idea to absolutely rule things out."

"I think what the country needs to do is understand we're going to have to do what it takes," explain Treasury Secretary Timothy Geithner.

So, how should individual investors respond to the latest economic news?  Click play for insight from financial adviser Robin Tull.

No matter how it's sliced, it will cost a lot to fundamentally change how health care is delivered and some analysts say there's no way the plan can be budget neutral, which could force more Americans to pay up to make it happen.

Still, assurances came from the White House, Monday, that only certain Americans will have to pay.

"I'm reiterating the president's clear commitment in the clearest terms possible, that he's not raising taxes on those who make less than $250,000 a year," Press Secretary Robert Gibbs said.

This week, the Obama team is focused on the economy.

"We still have a ways to go before we hit bottom and certainly it's going to be a long, hard slog getting out of this," said Christina Romer of the White House Council of Economic Advisors.

The economic forecast is mixed.  The good news-- last month, new manufacturing orders jumped to their highest levels in two years, home sales had their biggest monthly increase in eight years and the drop in overall economic growth slowed.  The bad news-- some analysts say it could be early 2011 before there's any noticeable improvement in job numbers.

That could make any attempts to raise taxes very unpopular for the president.

Log in or create an account to post a comment.  


Are you seeking answers in life? Are you hurting? Are you facing a difficult situation?

Find peace with God, discover more about God or send us your prayer request.

Call The 700 Club Prayer Center at 1 (800) 823-6053, 24 hours a day.

A caring friend will be there to pray with you in your time of need.

CBN News
David Brody

David Brody

CBN News Chief Political Correspondent

David Brody is an Emmy Award-winning veteran news journalist who has interviewed many prominent national figures during his career of nearly 25 years. Currently, David covers the White House and interviews national newsmakers across the country.  Follow David on Twitter @TheBrodyFile and "like" him at