Donald Trump said he will be negotiating his signature tax bill after Elon Musk publicly criticised the president’s spending plan, saying it “undermines” cost-cutting efforts that the world’s richest man once spearheaded.
Speaking to reporters on Wednesday, Trump acknowledged the bill “needs to get a lot of support” in Congress, adding “we have to get a lot of votes”. The president also said he was “not happy about certain aspects of it, but I’m thrilled by other aspects of it” and confirmed he would be negotiating the legislation.
The remarks come after Musk said he was “disappointed to see the massive spending bill, which increases the budget deficit … and undermines the work that the Doge team is doing” in comments made to CBS as part of a longer interview due to run on its Sunday morning programme this weekend.
Musk had been leading the “department of government efficiency” (Doge) since January, which was given the task of cutting state spending. He later announced in April he would be stepping back from the Trump administration after Tesla’s earnings plunged, and spending millions of dollars in a supreme court race that his Republican candidate ultimately lost.
Musk now appears to be hitting out at Trump’s One Big Beautiful Bill Act, which was narrowly approved last week by the House of Representatives.
The bill pushes ahead with a number of Trump’s campaign promises, including extending tax cuts for individuals and corporations and ending clean energy incentives enacted under Joe Biden.
It also involves about $1tn (£741bn) in cuts to benefits aimed at supporting struggling households, including a health insurance scheme for low-income families, Medicaid, and Supplemental Nutrition Assistance Program (Snap) food stamps.
However, the bill also funds the construction of a wall along the border with Mexico, as well as staff and facilities for mass deportations of undocumented immigrants. Even when taking cuts into account, the bill is expected to add about $2.3tn to the deficit, according to the non-partisan Congressional Budget Office.
Musk told CBS: “I think a bill can be big, or it can be beautiful. But I don’t know if it can be both. My personal opinion.”
The comments will fuel rumours of a growing rift between the billionaire and the US president, whom Musk helped bankroll last year. In total, Musk’s super political action committee donated $200m to Trump’s presidential campaign before the November election, which many credit with helping to return Trump to the White House.
Musk also has business interests at stake, with Trump’s bill due to end a $7,500 tax credit for electric vehicles and to impose a $250 annual registration fee for owners. The Tesla boss has previously called for an end to those incentives, although that was months before the EV maker’s earnings started to wobble.
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Last month, Tesla reported a 71% drop in first-quarter profits to $409m, compared with $1.39bn in the same period in 2024. Tesla’s stock has also suffered, with the company losing about a quarter of its market value since Musk took a top spot in Trump’s administration at the start of the year.
Musk’s criticism is likely to fuel opposition by hardline Republicans, who threatened to block Trump’s legislation as it passes through the US senate unless the president rolls out deeper cuts that would reduce the national debt. One key senator, Rand Paul from Kentucky, told Fox News Sunday that the bill’s cuts were “wimpy and anaemic” and would “explode the debt”.
However, Trump has already been treading on politically sensitive territory by supporting a bill that makes big cuts to programmes he promised to protect. He pledged multiple times on the campaign trail last year that he would not touch basic safety nets, including Medicaid.
Some of the president’s “make America great again” supporters, including the former White House strategist Steve Bannon, have also warned against such a move, with one Missouri senator, Josh Hawley, saying that cutting health insurance for the working poor would be “politically suicidal”.
Source: US Politics - theguardian.com
