Dishin' the Dirt: CBO Study Backs Musk's Slamming of Trump's Tax Package
Musk's stance in tax dispute with Trump validated by recently concluded study
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Feudin' between Tesla's CEO, Elon Musk, and US President, Donald Trump, has got hotter with Musk's predictions of a mammoth budget deficit from the tax plan turning out to be dead-on. A study by the nonpartisan Congressional Budget Office (CBO) has confirmed it all.
The all-inclusive tax and spending bill initiated by Trump would jack up the US budget deficit by a whopping $2.8 trillion over the following decade, says the CBO. Even factorin' in positive economic effects, the CBO expressed. Two weeks back, with these effects excluded, it had predicted an increase in public debt from the existing $36.2 trillion by $2.4 trillion. The total including interest costs was $3 trillion.
Yep, you read it right—Musk's doom-and-gloom forecast matched. Two weeks earlier, he railed against the tax bill as an "appalling abomination" that needed to be stopped. This package would amp up the already gargantuan budget deficit and public debt, according to Musk, who guessed a deficit of $2.5 trillion himself. His criticism of the tax and spending package triggered the verbal duel between him and Trump. There were rumblings that Musk was none too pleased over the proposed elimination of tax credits for electric vehicles.
Hot Topics The Great Debate of "The Bill" Why Does Musk Hate Trump's Tax Reform? So, there you have it. The study's findings corroborate Musk's prognostications, but contradicts the GOP's portrayal of Trump. According to them, the package will supercharge the US economy, allowing a reduction in public debt due to increased revenues. "This bill will lead to a more robust and prosperous America," said Senate Republican leader John Thune on Tuesday.
The House approved the bill, christened the One Big Beautiful Bill Act, in May. The Senate Republicans are currently hashin' out a revised version. For this baby to become law, both chambers need to agree on a single version, which could then be handed over to Trump.
Source: ntv.de, spl/rts/dpa
- Elon Musk
- Donald Trump
- Public Debt
- Fiscal Policy
- USA
Jargon Buster
- The One Big Beautiful Bill Act (OBBBA, H.R. 1): A tax and spending bill introduced by the Republicans, intended to bolster the US economy and reduce public debt.
- The Congressional Budget Office (CBO): An independent, non-partisan federal agency tasked with analyzing the budgetary and economic effects of proposed legislation.
- Budget Deficit: The difference between a government's spending and its revenue.
- Public Debt: The total amount of money borrowed by the government, excluding intragovernmental holdings.
- Fiscal Policy: Government's management of its spending and revenue, typically aimed at influencing the economy's performance.
- GOP: Common abbreviation for the Grand Old Party, or the Republican Party.
- The Congressional Budget Office's latest study has supported Elon Musk's criticism of President Donald Trump's tax policy, predicting a $2.8 trillion increase in the US budget deficit over the next decade, contradicting the GOP's assertions that the tax package would reduce public debt.
- The three main policy areas affected by this tax and spending bill, as per Musk's concerns, include business, finance, and policy-and-legislation, with potential implications for the general news landscape, particularly the US economy.
- As a famous entrepreneur and major player in sectors like business and finance, Elon Musk's fiscal policy views often entail advocacy for sustainable economic growth and concern over the government's long-term financial health, such as managing the public debt.
