logo
Mike Johnson downplays Musk's influence and says Republicans will pass Trump's tax and budget bill

Mike Johnson downplays Musk's influence and says Republicans will pass Trump's tax and budget bill

CTV News4 hours ago

Speaker of the House Mike Johnson, R-La., wraps up a news conference on U.S. President Donald Trump's bill of tax breaks and spending cuts, at the Capitol in Washington, Wednesday, June 4, 2025. (AP Photo/J. Scott Applewhite)
With an uncharacteristically feistiness, Speaker Mike Johnson took clear sides Sunday in U.S. President Donald Trump's breakup with mega-billionaire Elon Musk.
The Republican House leader and staunch Trump ally said Musk's criticism of the GOP's massive tax and budget policy bill will not derail the measure, and he downplayed Musk's influence over the GOP-controlled Congress.
'I didn't go out to craft a piece of legislation to please the richest man in the world,' Johnson said on ABC's 'This Week.' 'What we're trying to do is help hardworking Americans who are trying to provide for their families and make ends meet,' Johnson insisted.
Johnson said he has exchanged text messages with Musk since the former chief of Trump's Department of Government Efficiency came out against the GOP bill.
Musk called it an 'abomination' that would add to U.S. debts and threaten economic stability. He urged voters to flood Capitol Hill with calls to vote against the measure, which is pending in the Senate after clearing the House. His criticism sparked an angry social media back-and-forth with Trump, who told reporters over the weekend that he has no desire to repair his relationship with Musk.
The speaker was dismissive of Musk's threats to finance opponents — even Democrats — of Republican members who back Trump's bill.
'We've got almost no calls to the offices, any Republican member of Congress,' Johnson said. 'And I think that indicates that people are taking a wait and see attitude. Some who may be convinced by some of his arguments, but the rest understand: this is a very exciting piece of legislation.'
Johnson argued that Musk still believes 'that our policies are better for human flourishing. They're better for the US economy. They're better for everything that he's involved in with his innovation and job creation and entrepreneurship.'
The speaker and other Republicans, including Trump's White House budget chief, continued their push back Sunday against forecasts that their tax and budget plans will add to annual deficits and thus balloon a national debt already climbing toward $40 trillion.
Johnson insisted that Musk has bad information, and the speaker disputed the forecasts of the nonpartisan Congressional Budget Office that scores budget legislation. The bill would extend the 2017 Trump tax cuts, cut spending and reduce some other levies but also leave some 10.9 million more people without health insurance and spike deficits by $2.4 trillion over the decade, according to the CBO's analysis.
The speaker countered with arguments Republicans have made for decades: That lower taxes and spending cuts would spur economic growth that ensure deficits fall.
Russell Vought, who leads the White House Office of Budget and Management, said on Fox News Sunday that CBO analysts base their models of 'artificial baselines.' Because the 2017 tax law set the lower rates to expire, CBO's cost estimates, Vought argued, presuming a return to the higher rates before that law went into effect.
Vought acknowledged CBO's charge from Congress is to analyze legislation and current law as it is written. But he said the office could issue additional analyses, implying it would be friendlier to GOP goals. Asked whether the White House would ask for alternative estimates, Vought again put the burden on CBO, repeating that congressional rules allow the office to publish more analysis.
Other Republicans, meanwhile, approached the Trump-Musk battle cautiously.
'As a former professional fighter, I learned a long time ago, don't get between two fighters,' said Oklahoma Sen. Markwayne Mullin on CNN's 'State of the Union.'
He even compared the two billionaire businessmen to a married couple.
'President Trump is a friend of mine but I don't need to get, I can have friends that have disagreements,' Mullin said. 'My wife and I dearly love each other and every now and then, well actually quite often, sometimes she disagrees with me, but that doesn't mean that we can't stay focused on what's best for our family. Right now, there may be a disagreement but we're laser focused on what is best for the American people.'
Bill Barrow, The Associated Press
Associated Press journalist Gary Fields contributed from Washington.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

National Guard faces off with protesters hours after arriving in Los Angeles on Trump's orders
National Guard faces off with protesters hours after arriving in Los Angeles on Trump's orders

CTV News

time29 minutes ago

  • CTV News

National Guard faces off with protesters hours after arriving in Los Angeles on Trump's orders

Protesters clash with authorities in downtown Los Angeles, Sunday, June 8, 2025, following last night's immigration raid protest. (AP Photo/Jae Hong) LOS ANGELES — Members of the National Guard faced off with protesters in Los Angeles on Sunday, and tear gas was fired at a growing crowd that gathered outside a federal complex hours after the federal troops arrived in the city on U.S. President Donald Trump's orders. The confrontation broke out in front of the Metropolitan Detention Center in downtown Los Angeles, as a group of demonstrators shouted insults at members of the guard lined shoulder to shoulder behind plastic riot shields. There did not appear to be any arrests. Around members 300 National Guard troops arrived in Los Angeles early Sunday following clashes in recent days between protesters and federal immigration agents. The deployment followed two days of protests that began Friday in downtown Los Angeles before spreading on Saturday to Paramount, a heavily Latino city south of the city, and neighboring Compton. As federal agents set up a staging area Saturday near a Home Depot in Paramount, demonstrators attempted to block Border Patrol vehicles, with some hurling rocks and chunks of cement. In response, agents in riot gear unleashed tear gas, flash-bang explosives and pepper balls. Tensions were high after a series of sweeps by immigration authorities the previous day, as the weeklong tally of immigrant arrests in the city climbed above 100. A prominent union leader was arrested while protesting and accused of impeding law enforcement. The deployment of the National Guard came over the objections of Gov. Gavin Newsom, who accused Trump of a 'complete overreaction' designed to create a spectacle of force. The recent protests have drawn hundreds of participants but remain far smaller than other mass demonstrations, including the 2020 protests against police violence that spurred Newsom to request assistance from the National Guard. The last time the National Guard was activated without a governor's permission was in 1965, when President Lyndon B. Johnson sent troops to protect a civil rights march in Alabama, according to the Brennan Center for Justice. Trump has framed the move as a necessary response to Newsom's and Los Angeles Mayor Karen Bass's failure to swiftly contain the unrest. In a directive Saturday, Trump invoked a legal provision allowing him to deploy federal service members when there is 'a rebellion or danger of a rebellion against the authority of the Government of the United States.' He said he had authorized the deployment of 2,000 members of the National Guard. Newsom called Trump on Friday night and they spoke for about 40 minutes, according to the governor's office. It was not clear if they spoke Saturday or Sunday. There was some confusion surrounding the exact timing of the guard's arrival. Shortly before midnight local time, Trump congratulated the National Guard on a 'job well done.' But less than an hour later, Los Angeles Mayor Karen Bass said troops had yet to arrive in the city. In a statement Sunday, Assistant Homeland Security Secretary Tricia McLaughlin accused California's politicians and protesters of 'defending heinous illegal alien criminals at the expense of Americans' safety.' 'Instead of rioting, they should be thanking ICE officers every single day who wake up and make our communities safer,' McLaughlin added. The troops included members of the California Army National Guard's 79th Infantry Brigade Combat Team, according to a social media post from the Department of Defense. In a signal of the administration's aggressive approach, Defense Secretary Pete Hegseth also threatened to deploy active-duty Marines 'if violence continues' in the region. Vermont Sen. Bernie Sanders said the order by Trump reflected 'a president moving this country rapidly into authoritarianism' and 'usurping the powers of the United States Congress.' House Speaker Mike Johnson, a staunch Trump ally, endorsed the president's move, doubling down on Republicans' criticisms of California Democrats. 'Gavin Newsom has shown an inability or an unwillingness to do what is necessary, so the president stepped in,' Johnson said.

Where Will Walmart Stock Be in 3 Years?
Where Will Walmart Stock Be in 3 Years?

Globe and Mail

timean hour ago

  • Globe and Mail

Where Will Walmart Stock Be in 3 Years?

When most investors are thinking about buying a particular stock, they'll start by looking at the underlying company's recent fiscal results. And to be fair, it's a sound approach. Although past performance is no guarantee of future results, that past gives us a reasonably good idea of what the future likely holds. Still, sometimes we need to dig deeper and examine the qualitative things a company is doing that could alter its quantitative future. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » With that as the backdrop, although there's not much unpredictability with its business, Walmart (NYSE: WMT) and its stock are apt to be somewhere pleasantly surprising in the next three years. Here's why. Meet the new-and-improving Walmart Walmart is the world's biggest brick-and-mortar retailer, with 90% of U.S. residents living within 10 miles of one of its 4,600 domestic namesake stores, or one of its 600 Sam's Club warehouses. There are almost 5,600 other locations outside of the United States as well. Last year this giant of a company did $681 billion worth of business, turning $19.4 billion of that into after-tax net income, and extending long-standing (even if occasionally bent and sometimes slow) growth trends. And yes, those numbers confirm the retailer continues to dominate at least North America's general merchandise and grocery retailing landscapes. But the Walmart of yesteryear -- and even the Walmart of today -- isn't quite the Walmart you can expect come 2028. There are several initiatives underway right now that should be measurably more mature three years from now, each of which could make a positive impact on its top and bottom lines. One of these initiatives is its nascent online advertising business. If you ever shop at then you've seen advertisements, probably without even giving it a second thought. Every website runs ads these days, after all. Except, Walmart isn't simply hoping to prompt you into making a purchase of something it's selling. Brands are paying Walmart to promote their particular goods online with these ads. The retailer did $4.4 billion worth of this high-margin advertising business, in fact, up 27% year over year, and bolstering the bottom line for an e-commerce platform Walmart was going to operate anyway. This still only scratches the surface of the opportunity, though. With an ever-growing amount of insight as to what works and what doesn't, this advertising revenue's growth accelerated to a pace of 31% year over year during the first quarter of this year. While it's not clear exactly where the ceiling is for this business, eMarketer expects average annualized growth of 17.2% for the United States' entire retail media (digital advertising at retailers' e-commerce sites) business. That outlook bodes very well for long-term ad business growth. The mega-retailer isn't just looking to the U.S. as a growth engine, however. Indeed, Walmart seemingly understands that it's running out of places within the United States to establish profitable brick-and-mortar stores, having closed 11 of them last year. There's opportunity abroad, and the company is capitalizing on it more than you might realize. In 2023, management announced its goal to grow its international revenue from around $100 billion per year then to $200 billion annually by 2028. After last year's reported tally of $121.9 billion, that target doesn't seem so crazy after all. Finally, while most investors can acknowledge Walmart has done the unthinkable by building a respectably sized e-commerce business in a market that's dominated by Amazon (NASDAQ: AMZN), they may be underestimating just how well it's doing online. Although the company itself doesn't disclose the specifics, consensus numbers provided by Statista suggest Walmart's worldwide annual online sales have soared from around $25 billion in 2019 to roughly $100 million last year. That's still only a drop in the bucket, to be clear. Even within the all-important U.S, market, Walmart's 10.6% share of the e-commerce market is a distant second to Amazon's 39.7%, according to data compiled by industry research outfit Digital Commerce 360. It's worth noting, however, that Walmart's share of the domestic online shopping market has more than doubled since 2017, while Amazon's share has barely budged. Clearly the company is doing something right. And remember that each of these initiatives is still a work in progress. We're not yet seeing these efforts working at their eventual, refined best. But tariffs? Arguably more bark than bite. The longer the standoff lingers, the clearer it becomes that President Donald Trump is posturing as a negotiation tactic. He wants trade to flow as freely as much as anyone. What it means for revenue, earnings, and Walmart stock So what does it mean for investors? It means don't be surprised if Walmart outperforms expectations over the course of the coming three years. As of the latest look, the analyst community is calling for full-year revenue of $766 billion for the 12-month stretch ending in 2027. Extrapolating that annualized growth rate of 4% would put calendar 2028's top line in the ballpark of just under $800 billion. Using the same projection math, per-share earnings should swell from last year's $2.41 to roughly $3.60 for the same time frame. Not bad. Just bear in mind that analysts could be underestimating Walmart's potential upside just as much as average individual investors are. Walmart's yearly sales growth rate has easily exceeded 6% in most years since 2021, and that's without all the growth weapons the company is successfully wielding now. As for the stock, assuming its current earnings-based valuation of around 42 times its trailing per-share profits, Walmart stock could be priced around $144 three years from now. That's a 47% gain, or an average annualized improvement of roughly 15%. Just don't get so enamored by the numbers that you look past the bigger and better reason to own a piece of this company (or any other). That is, Walmart is doing a lot of things right, leveraging its strengths while creating new ones. When an organization does that, everything else including progress from its stock tends to fall in line. Should you invest $1,000 in Walmart right now? Before you buy stock in Walmart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Walmart wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Walmart. The Motley Fool has a disclosure policy.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store