Billionaire Elon Musk recently publicly criticized President Trump, criticizing the newly passed landmark tax bill as a "massive expenditure" bill that could potentially undermine fiscal discipline and directly weaken the cost-cutting efforts he previously led in the "Government Efficiency Department" (DOGE), seemingly suggesting that the two are beginning to diverge in their fiscal philosophies and possibly indicating new cracks in their once-close collaborative relationship.
Musk Calls the 'Great Beautiful Bill' Disappointing
In the preview of an interview on CBS Sunday Morning aired Tuesday night, Musk explicitly expressed his "disappointment" with this massive spending bill. He believes the bill will increase budget deficits and essentially "destroy" the work his DOGE team has done to save government expenses. Musk stated in the interview:
Disappointed with this massive spending bill, which increases budget deficits... and destroys the work of the government efficiency team...
I think a bill can be big and beautiful. But I don't know if it can be both. This is my personal opinion.
The U.S. House of Representatives passed the bill last week by a slim margin, marking Trump's first significant legislative success in his potential second term. The bill has now been submitted to the Senate for voting, and Trump previously praised it as "arguably the most meaningful legislation in our country's history" and successfully persuaded several Republican congressmen to support what he called this "big and beautiful bill".
Trump's Landmark Tax Reform: Content and Cost
The bill's core content includes comprehensive tax cuts totaling $4.5 trillion over the next decade, including permanently establishing several provisions from the 2017 Tax Cuts and Jobs Act, increasing child tax credits, raising standard deductions, and eliminating taxes on tips and overtime. Although supporters claim this will stimulate economic growth, the bill has been fiercely criticized by fiscal conservatives for potentially significantly increasing U.S. national debt over the next decade.
Critics estimate the bill could add $3.3 trillion to the U.S. national debt over ten years. The Congressional Budget Office (CBO) also estimates that by 2034, the bill will increase federal deficits by approximately $3.8 trillion. Musk has long warned that if the deficit issue is not controlled, the U.S. faces the risk of "bankruptcy". His comments on CBS clearly echo these concerns about rising deficits.
Destroying DOGE's Achievements?
During Trump's presidency, Musk led the establishment of the "Government Efficiency Department" (DOGE), aiming to reduce government spending and waste. Musk initially set a goal of cutting at least $2 trillion from the federal budget, which he later revised to $1 trillion. According to DOGE, the department saved approximately $160-175 billion for the federal budget by canceling contracts and reducing personnel, though the accuracy and long-term impact of these figures have been widely questioned.
Notably, Musk resigned from DOGE last month to focus more on his business empire, especially Tesla. Reports suggest Tesla's recent sales decline is partly attributed to Musk's close association with the Trump administration. Additionally, Musk had conflicts with some cabinet members over DOGE's staff reduction efforts and expressed frustration at legislative obstacles to his cost-cutting initiatives.
The Subtle Changes between Musk and Trump
Musk's comments on the tax bill can be considered his strongest public rebuke of the Trump administration to date, marking increasingly widening differences between him and Trump's camp. Previously, he had criticized the White House's trade policies, calling then-trade czar Peter Navarro an "idiot" and "dumber than a bag of rocks", and suggested that lowering tariffs might be a better idea.
Musk's concerns also extend to specific bill provisions, such as reduced clean energy tax credits that could harm Tesla and other electric vehicle manufacturers by decreasing consumer incentives. Although Musk was once a staunch Trump supporter, spending nearly $300 million supporting Trump and other Republicans last year, he stated last week that he plans to spend "much less" on campaign activities and has already "done enough" for political donations. Various signs indicate that Musk is shifting more energy towards his business empire, particularly Tesla's operations, due to concerns about brand image and potential conflicts of interest.
This rare public criticism not only adds complexity to their future interactions but also once again brings the importance of fiscal discipline for America's long-term development into the spotlight.
