American billionaire Elon Musk has sharply criticized US President Donald Trump's proposed tax bill, arguing that the new legislation undermines the government's efficiency team's efforts to cut costs and achieve fiscal discipline, efforts Musk himself led while serving as a government official.
In an interview broadcast on CBS Tuesday night, the Tesla (NASDAQ:TSLA) CEO expressed his disappointment with the spending bill, which he described as "increasing the budget deficit and undermining the institutional work that has been done before." Musk added, "The bill can be big or beautiful, but I don't think it can be both," in his first public and direct confrontation with Trump since withdrawing from government duties.
During the interview, Musk announced his intention to reduce his involvement in politics, citing the administration's expanding trend toward expansionary spending, which he sees as lacking discipline. He expressed concern that the US budget deficit would worsen if this trend continues.
Trump's new bill includes an extension of the 2017 tax cuts, increased spending on border security, and new work requirements for Medicaid beneficiaries. The bill also includes cuts to clean energy tax incentives, a sensitive provision for Musk, who is known for his support of sustainable energy technologies through Tesla and SpaceX.
Although Elon Musk has been a key supporter of Trump, this direct attack indicates a clear rift in the relationship between the two men, especially since Musk previously led the Department of Government Efficiency and contributed to implementing institutional cuts that sparked widespread controversy and challenges.
