In a stunning break with Trump, Elon Musk blasted proposed extensions of the 2017 tax cuts, calling them a gift to billionaires that would explode the federal deficit. The legislation, narrowly passing 215-214, would slash $880 billion from Medicaid while padding wealthy pockets. Musk’s sharpest criticism of Trump yet highlighted the disconnect between tax policy and fiscal responsibility. The clash between these titans reveals deeper tensions within Republican circles.
Despite his previous financial support for Donald Trump, Tesla CEO Elon Musk has launched his sharpest criticism yet of the former president’s signature tax policy. Musk blasted the proposed extension of Trump’s 2017 tax cuts, arguing they would dramatically increase the federal deficit while primarily benefiting the ultra-wealthy – yes, including billionaires like himself.
The criticism comes as Congress narrowly passed what Trump dubbed “One Big Beautiful Bill” with a razor-thin margin of 215-214. The legislation seeks to extend the 2017 tax cuts for another decade while simultaneously proposing significant cuts to social safety net programs. Musk didn’t mince words about the impact. The bill also aims to eliminate taxes on tips and overtime, reflecting Trump’s aggressive tax reduction strategy.
Of particular concern to Musk is how the bill would effectively undo cost-cutting reforms led by the Department of Government Efficiency (DOGE). The projected multi-trillion dollar revenue loss over ten years would dwarf any savings achieved through government streamlining efforts. So much for efficiency. Conservative senators including Rand Paul and Ron Johnson have already signaled their strong opposition to the bill.
The legislation’s attempts to offset costs through $880 billion in Medicaid cuts aren’t nearly enough to balance the books. The math just doesn’t add up. The 4% withdrawal rule suggests retirees could face significant challenges if social safety nets are weakened. The bill also includes controversial provisions like Medicaid work requirements and rollbacks of clean energy tax credits – a move that raised eyebrows given Musk’s position in the electric vehicle industry.
What makes Musk’s opposition particularly significant is the timing. It marks his most direct public break with Trump, despite their previously cordial relationship. The criticism has amplified existing rifts within conservative and business circles about the wisdom of deficit-financing tax cuts that disproportionately benefit the wealthy.
The political dynamics are messy. While Trump’s base and Republican leadership pushed hard for the bill, they barely overcame resistance from their party’s right flank. Meanwhile, Musk’s public stance has reignited broader debates about equitable tax policy and fiscal responsibility.
One thing’s clear: when a billionaire calls out tax cuts for helping billionaires, people tend to notice.
