Latest news with #economiclegislation
CNA
6 days ago
- Business
- CNA
Musk slams Trump's ‘disgusting abomination' spending bill, warns of ballooning US debt
WASHINGTON: Tensions between Elon Musk and President Donald Trump escalated Tuesday (Jun 3) as the billionaire tech mogul derided the administration's marquee economic legislation, just days after stepping down from a key White House advisory role. "This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination," Musk posted on X, adding, "Shame on those who voted for it: you know you did wrong." The Tesla and SpaceX chief had previously offered only mild critiques of the so-called "One Big Beautiful Bill," which includes deep cuts to welfare programs but is projected to add between US$2.5 trillion and US$3.8 trillion to the federal debt. His latest comments suggest a sharp break with the White House, where Musk recently led the Department of Government Efficiency (DOGE). Musk's frustration boils over Musk's criticism was not limited to the bill's budgetary implications. He said it would leave citizens burdened with "crushingly unsustainable debt" and called out those who backed it for prioritising political gains over fiscal discipline. He also expressed frustration with the removal of electric vehicle tax credits, a direct blow to Tesla, and with other unfulfilled promises, such as the exclusion of his Starlink system from US air traffic control plans and the withdrawal of his ally Jared Isaacman's nomination to lead NASA. Though Trump previously praised Musk's role in cutting government waste, sources say the billionaire has become disillusioned after failing to secure policy wins that would benefit his companies. His stepping down from DOGE followed months of controversial cuts, including the closure of multiple agencies and tens of thousands of job losses. White House and GOP leaders push back White House Press Secretary Karoline Leavitt downplayed the remarks, saying: "The president already knows where Elon Musk stood on this bill. It does not change his opinion. This is one big, beautiful bill, and he is sticking to it." House Speaker Mike Johnson was more forceful, calling Musk 'terribly wrong,' despite having walked him through the bill just a day earlier. Still, not all Republicans were united. Some fiscal conservatives have raised alarm over the ballooning national debt, echoing Musk's warnings. Bill under fire as negotiations continue The House narrowly passed the bill last month by a single vote. It now heads to the Senate, where revisions are expected during a month of tense negotiations. The Congressional Budget Office estimates the measure could add up to US$3.8 trillion to the federal debt, which already exceeds US$36 trillion. DOGE had initially promised to save US$2 trillion in discretionary spending, but the agency's own claims have fallen far short. The White House says it has saved just US$180 billion, a figure independent analysts have disputed. Senate Democrats on Tuesday released a report listing 130 instances of what they describe as unethical or corrupt decisions that enriched Musk, adding over US$100 billion to his wealth. Musk recalibrates political ties The rift with Trump marks a significant shift for Musk, who donated nearly US$300 million to the president's 2024 campaign and previously wielded significant influence over technology and fiscal policy. His recent moves suggest a deliberate pivot. Insiders say Musk is keen to reduce the political blowback facing Tesla, where customers in some markets have reportedly been turned off by his perceived proximity to Trump. In response to mounting criticism, Musk has pledged to refocus on his companies, stepping back from Washington and allowing DOGE to continue under new leadership. As the Senate prepares for a contentious round of negotiations, Musk's high-profile rebuke adds to the growing pressure on lawmakers to revise the bill, and signals a potential fracture in the president's business support base.
Free Malaysia Today
7 days ago
- Business
- Free Malaysia Today
Musk blasts Trump mega-bill, days after farewell
Elon Musk received praise from Donald Trump upon leaving his White House advisory position at the Department of Government Efficiency last week. (AP pic) WASHINGTON : Tensions between allies Elon Musk and Donald Trump erupted Tuesday as the world's richest man derided the president's key piece of economic legislation in a startling rupture just days after exiting a controversial job in the White House. Musk was lauded by the Republican leader as he left his advisory role atop Trump's 'Department of Government Efficiency' last week, despite criticism over his failure to deliver on promises of a transformative program of spending cuts. 'This massive, outrageous, pork-filled congressional spending bill is a disgusting abomination,' Musk posted on X as he followed its progress from the sidelines, in by far his most caustic remarks on Trump's agenda. 'Shame on those who voted for it: you know you did wrong.' It was not Musk's first comments on Trump's so-called 'big, beautiful bill' which is set to add US$3 trillion to US deficits over a 10-year horizon, despite deep cuts to health and food aid programmes. But Musk's previous criticism was more restrained, with the Tesla and SpaceX magnate offering only that it undermined his cost-cutting efforts. On Tuesday he said the bill – being considered by congress – would burden 'citizens with crushingly unsustainable debt.' His post laid bare an increasingly tense relationship between the White House and Musk, who donated almost US$300 million to Trump's 2024 election campaign. Yet the normally pugilistic Republican has pulled his punches, aware of his biggest backer's enormous influence over young, tech-savvy and historically apathetic voters – a key Trump constituency in 2024. 'The president already knows where Elon Musk stood on this bill, it doesn't change his opinion,' White House press secretary Karoline Leavitt told reporters in a rapid response to Musk's tweet. 'This is one big, beautiful bill, and he's sticking to it.' The spat came with House Republicans gearing up to pass legislation due from the White House later Tuesday that proposes to enshrine into law US$9.4 billion of DOGE's cuts. House speaker Mike Johnson called Musk's comments 'disappointing,' adding that he had talked his 'good friend' through the bill during a 20-minute phone call on Monday, and that he 'seemed to understand.' Burgeoning debt As the world's richest person bowed out of his role as Trump's cost-cutter-in-chief, their relationship appeared on an even keel as the Republican hailed his fellow billionaire's 'incredible service.' Trump even insisted that Musk was 'really not leaving' after a turbulent four months in which the South African born tycoon cut tens of thousands of jobs, shuttered whole agencies and slashed foreign aid. DOGE – announced after Musk became a regular fixture on the campaign trail for Trump – led an ideologically-driven rampage through the federal government, with its young 'tech bros' slashing tens of thousands of jobs. But its achievements fell far short of Musk's original boast that he could save US$2 trillion dollars – more than the government's entire discretionary spending budget for 2024. The DOGE website claims to have saved taxpayers less than a tenth of that total – just US$175 billion – and fact checkers even see that claim as dubious, given previous serious inaccuracies in its accounting. Senate Democrats released a report Tuesday itemising 130 examples of 'unethical or potentially corrupt' administration actions they say have helped Musk add US$100 billion to his wealth during his tenure. The report came as senators began what is expected to be a fraught month of negotiations on Trump's mammoth policy package, expected to add between US$2.5 trillion and US$3.1 trillion to deficits over a decade. The White House says the legislation will spur robust economic growth to neutralise its potential to blow up America's already burgeoning debt pile, which has ballooned to US$36.9 trillion. Trump said on Monday it was 'the single biggest Spending Cut in History,' although he added: 'The only 'cutting' we will do is for Waste, Fraud, and Abuse.'
Bloomberg
13-05-2025
- Business
- Bloomberg
How ‘MAGA Accounts' With $1,000 Savings for Babies Would Work
The $4 trillion tax bill released May 12 by House Republicans, which sets the stage for a Congressional battle over President Donald Trump's key economic legislation, includes an unusual provision: the creation of a new savings vehicle dubbed 'MAGA accounts' that would be seeded with $1,000 for each American baby born in the next few years. The funds, which would be invested in US equities and locked up until the child turns 18, are meant to defray the costs of higher education, training programs, small business loans or first-time home purchases. The idea, according to the text of the bill, is to promote 'financial security.'
