Musk clashes with Trump: Tax bill deepens deficit concerns
Elon Musk has strongly criticised Donald Trump's tax bill, stating that it increases the deficit and undermines his team's efforts to reduce costs. This marks the most significant public disagreement to date between the billionaire and the president, to whom he had provided financial support in the previous election, reports the Financial Times.
Elon Musk, the former head of the government efficiency team, known informally as DOGE, did not hold back in his critique of the new tax bill introduced by Donald Trump's administration.
In an interview with CBS Sunday Morning, Musk described the bill as "massive," claiming it exacerbates the U.S. budget deficit while counteracting his team's attempts to economise and lower expenses.
The bill, which recently passed unanimously through the House of Representatives and is awaiting a Senate vote, was heralded by Trump himself as "arguably the most significant piece of Legislation that will ever be signed in the History of our Country." However, according to independent analyses, the document is projected to increase the national debt by over $3.3 (€2.9) trillion over the next decade.
Musk criticises
Musk, who has long cautioned that the U.S. could face bankruptcy if the deficit is not curtailed, underscores that while the bill may be "big" or "beautiful," it might not necessarily be both. His remarks further strain his relationship with Trump, whom the billionaire backed financially in the last election with nearly $300 (€265) million.
Musk also did not conceal his frustration with the administration's actions, labelling key trade advisor Peter Navarro a "moron" and opposing some staff reductions in government agencies. Following his withdrawal from the DOGE team last month, Musk announced he would return to focusing intensively on his companies, such as Tesla and SpaceX.
Meanwhile, there are allegations that the DOGE team's expected savings, which were supposed to be in the region of $2 (€1.8) trillion, were significantly overstated. An investigation by the "Financial Times" revealed that only a fraction of these savings is corroborated, and the team's reports are laden with errors and redundancies.
