Trump counters Musk: Dispute over billion -dollar tax reform flared up!

Trump counters Musk: Dispute over billion -dollar tax reform flared up!

Oval Office, Washington, D.C., USA - President Donald Trump is under pressure after Elon Musk, a prominent advisor to the government, has sharply criticized the budget reform he described as "Big Beautiful Bill". Musk criticized during an inauguration ceremony in the Oval Office that the law package would increase national debt. Trump, who expressed ambivalent feelings about the law, continued to defend the planned tax cuts, explained that he was satisfied with both positive and negative aspects of the law.

The Bill, which comprises more than a thousand pages, contains important domestic priorities from Trump's term. In particular, it should consolidate the tax relief from Trump's first term of office in 2017 and increase funds for mass displays and border security. A total of $ 46.5 billion is intended for the construction of the border wall on the southern border and other barriers. In addition, the law provides for $ 4 trillion and incorporating strict work requirements for Medicaid and the Supplemental Nutrition Assistance Program (SNAP).

criticism of the debt

critics fear that the new requirements could continue to drive millions of families into poverty. Musk, who heads the Department of Government Efficiency (Doge), expressed disappointment with the draft law and emphasized that he undermined the efforts to reduce waste. The congressional budget office predicts that the draft law will increase national debt by $ 3.8 trillion in the next ten years. Several analysts already warn of a growing household hole in the US

The transfer of the draft law to the Senate takes place in the middle of concerns from the Republicans who can only lose three votes to adopt the law. Trump himself expresses concerns about possible cuts in Medicaid, but emphasizes the advantages of tax relief for low -income and middle earners. While Musk continues to doubt Trump's strategic decisions, there has also been criticism of budget laws among previous presidents in the past.

accompanying economic developments

Current US state debt is currently 120 percent of gross domestic product. The financial markets are increasingly nervous to developments, and the yields of long-term US state bonds are increasing significantly. Moody’s also downgraded the US creditworthiness and predicts a further deterioration in the economic situation. Many investors fear that the ongoing high debts could endanger the role of the dollar as a world leading currency.

Musk, who works as a “special employee” in the White House and whose term of office ends on May 31, 2025, plans to reduce his working hours with Doge in order to concentrate on his tasks as CEO of Tesla. With the recently estimated savings of Doge, which is around $ 175 billion, any taxpayer could receive around $ 1.086.96 reimbursed. Despite these savings, it remains critical of whether the current legislative proposals can ensure the long -term financial stability of the United States.

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