The bill less supports electric cars and solar power, and instead helps the coal industry.
Billionaire Elon Musk criticized the US Senate’s latest version of President Donald Trump’s tax and spending bill on Saturday, June 28. Musk referred to the bill as “utterly insane and destructive.”
In an X post, Musk alleged that the newest Senate draft bill would wipe out millions of jobs in the US and seriously hurt the nation. He further stated that the bill benefits outdated industries while greatly harming future industries.
The tech billionaire’s recent criticism threatens to reignite his public conflict with Trump, which began after the world’s richest man exited his cost-slashing job in the administration.
Musk strongly condemns Trump’s tax and spending bill
The new bill significantly reduces financial support for clean energy initiatives such as wind, solar, and electric vehicle tax credits, while introducing new incentives for the coal industry.
Musk has previously stepped in to halt the major spending bill. He opposed a government spending plan by posting about it online last December, which led many Republicans to withdraw their support and almost caused a government shutdown.
Back then, Musk had more power as a close ally of Trump and the biggest donor for Trump’s reelection campaign. However, his influence in the Republican Party has decreased after his controversial time leading the Department of Government Efficiency, which created ongoing problems for the White House.
Additionally, in the tech entrepreneur’s contribution in the congressional debate over President Donald Trump’s sweeping tax and spending bill, he called the bill “a disgusting abomination” that would cause a surge in the federal deficit.
Several US Senate fiscally conservative Republicans supported Musk’s social media posts, which might make it harder for the bill to pass in that chamber.
Musk shared an X post stating that he was really fed up with this. Based on his argument, this huge, ridiculous spending bill from Congress was awful.
He continued, “Shame on those who supported it: deep down, you know it was wrong. You know it.”
Though the previous proposal would have phased out the incentive at the end of this year for most sales of electric vehicles, the new version ends the credit after September 30. The tax credits for purchasing used and commercial electric vehicles would also expire simultaneously.
Musk threatened to finance primary challenges to the GOP’s tax bill supporters
Trump and his team stated that the president has shifted his focus to more important issues. The argument with his once omnipresent benefactor had kept both Washington and Wall Street closely watching every update.
Trump directed his anger toward Federal Reserve Board Chairman Jerome Powell after the May jobs report came in better than expected. On Truth Social, he wrote, “Go for a full point, Rocket Fuel!”
He also stated that his main trade advisors would meet with their Chinese counterparts in London. He mentioned that the meeting should go very well.
Meanwhile, Congressional Republicans were taking Trump’s side on the bill, gambling that sticking to the president is a smarter move even as Musk threatens to help finance primary challenges to anyone who votes for it. However, it is worth noting that they were nowhere near agreement on the specifics.
Two White House officials familiar with the situation revealed that Trump had no plans or intentions to speak with Musk, though they indicated the tech mogul had hoped for such a call.
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