December’s newsletter from Dr. Goss of Creighton sees him talking about the US federal debt, which is currently at $33 trillion, and is creeping towards 34. Goss points out the fact that the yearly interest “now exceed[s] the nation’s annual defense budget.”

Senator Ron Wyden of Oregon has proposed what he is calling the Billionaires Income Tax, with the intent that it will deal with “loopholes that allow the ultra-wealthy to get away without paying their fair share” by ending what is called the “Buy, Borrow, Die” method that many use to avoid taxation. This refers to when rich individuals buy items that appreciate in value, then borrow against the increasing value to keep from paying taxes, and once they die pass the assets to their beneficiaries tax-free. The tax is intended to focus on those with over $1 billion, or who make more than $100 million in income for at least three years consecutive.

While skeptical of the positives for this tax, as he believes it would tax assets such as homes and farmland that accrue interest. In his newsletter, Goss goes into proposing a scenario where a homeowner has already paid their mortgage and is paying property taxes and must now pay a wealth tax. But this would only be affecting those making millions in income a year, so the standard homeowner making a comfortable income will not be bothered by this tax.

Dr. Goss believes that short-term interest rates will remain unchanged through January. He believes that we are still likely to have a recession in the early part of 2024, which he thinks will be another housing market bubble and will see foreclosures rising.

He recommends that people keep their attention on the 10-year Treasury Bond, which is a great marker for the economy. He also believes that the National Association of Realtors’ existing home sales and prices will show how the real estate market is doing in real time. His final suggestion is to check on the Employment Report for December, which will show a good estimate for bond prices.

If you are interested in learning more about what Dr. Goss thinks about the economy, you can sign up for his monthly newsletter by going to his website at gossandassociates.com. If you would like to learn more about the Billionaires Income Tax, you can go to finance.senate.gov/chairmans-news/wyden-leads-democratic-colleagues-in-introducing-billionaires-income-tax.