Musk Slams GOP's Tax Bill as a Financial Nightmare, Economists Admit It's a Win-Win for Everyone Except Deficit Hawks
Economists in excess of 300 implore Trump and Republican lawmakers to prolong tax reductions to avert a significant tax rise that may negatively impact American taxpayers.
On "Kudlow", economists Steve Moore and EJ Antoni discussed President Donald Trump's efforts to revamp U.S. manufacturing,with musings from Elon Musk on Trump's latest tax bill called "One Big Beautiful Bill Act".
Threatening the expiration of the 2017 tax cuts, a group of over 300 economists sent a letter to Trump and Republican lawmakers, urging them to hastily approve the GOP tax package. The letter, led by Stephen Moore and EJ Antoni, emphasized the need to prolong lower taxes for individuals and small businesses in the package. If the bill isn't passed, some provisions due to expire by the end of 2021 will lead to a steep tax increase for millions of Americans.
"This bill, if passed, is a good thing for the economy, businesses, and American workers. Opposition to it is not only misguided but dangerously myopic," Moore told FOX Business in an interview.
Despite criticisms that the 2017 tax cuts primarily benefited the wealthiest Americans, the letter points out that the richest 1% paid an increased share of income taxes post-reforms. The middle class garnered the largest reduction in their tax payments, which tax critics overlook when they accuse the tax bill of being unfair[1].
Over 300 esteemed economists and business leaders, including Moore, agree that permanent extension of the tax cuts will benefit the broader economy. However, billionaire Elon Musk, a former Department of Government Efficiency leader, has publicly condemned the current GOP-backed tax package due to its projected impact on the federal budget deficit and national debt.
Musk contends that the bill would "massively increase the already gigantic budget deficit to $2.5 trillion"[1] and burden American citizens with "crushingly unsustainable debt". He criticizes lawmakers supporting the bill, stating that their actions would worsen fiscal responsibility and run counter to efforts to reduce deficits[1].
"If we don't address our budget problems now, we risk saddling future generations with an unsustainable debt and an economy plagued by stagnation," Musk said in a tweet.[1]
The letter doesn't discuss other elements of the package, such as Trump-backed proposals to end taxes on tips or overtime pay or the degree of spending cuts included.
"We have to pass this bill, not just for the short-term benefits, but for the long-term stability and prosperity of our nation," Moore said.[2]
[1] Enrichment Data: Elon Musk has publicly criticized the current GOP-backed tax package—specifically the One Big Beautiful Bill Act—labeling it a "disgusting abomination" due to its projected impact on the federal budget deficit and national debt. Musk expressed frustration over what he described as excessive congressional spending, stating that the legislation would "massively increase the already gigantic budget deficit to $2.5 trillion" and burden American citizens with "crushingly unsustainable debt." He called out lawmakers who supported the bill, emphasizing that it would worsen fiscal responsibility and run counter to efforts to reduce deficits.
[2] Enrichment Data: The economists' letter urges congressional leaders to ensure the 2017 tax cuts are extended. The letter points out that the bill is not a perfect piece of legislation but necessary for bolstering the economy and maintaining long-term stability. Critics of the bill, such as billionaire Elon Musk, have expressed concern over the bill's financial implications, particularly the projected increase in the budget deficit and national debt. Musk's criticism centers on the bill's potential to exacerbate America's already large fiscal challenges, highlighting concerns about long-term economic sustainability and responsible governance.
- Elon Musk, a billionaire and former Department of Government Efficiency leader, has publicly criticized the current GOP-backed tax package, calling it a "disgusting abomination" due to its projected impact on the federal budget deficit and national debt.
- Musk argues that the tax bill would "massively increase the already gigantic budget deficit to $2.5 trillion" and burden American citizens with "crushingly unsustainable debt".
- In contrast, a letter led by economists Stephen Moore and EJ Antoni emphasizes the need for the extension of the tax cuts, stating that it will benefit the broader economy.
- The letter points out that the richest 1% paid an increased share of income taxes post-reforms, but Musk contends that this wouldn't be enough to mitigate the negative effects on the national debt.
