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New tax and budget bill sparks feud between Trump and Musk
12-06-2025 14:22
New tax and budget bill sparks feud between Trump and Musk
New tax and budget bill sparks feud between Trump and Musk

Former political allies at the White House and two strong personalities ended up in a verbal feud in public. What is the underlying reason for their discord? The new tax and budget bill was proposed by US President Donald Trump! Elon Musk, harsh in his words, called this document "an abominable monstrosity." In turn, the American leader could not tolerate that twist. As a result, the Tesla and SpaceX CEO had to leave his job in Trump’s administration.  

A recent statement by Elon Musk, sharply criticizing the bill defined by Trump as one big beautiful bill, was not just an eccentric outburst by a billionaire. According to experts, the quarrel between the two media personalities signals a deep division in the economic thinking of the American elites. Elon Musk is not just the voice of Silicon Valley, but a representative of the new high-tech sector that is directly clashing with the restoration of the Republican industrial model, analysts point out.

So, what is the essence of the bill proposed by Trump's team, which became the apple of discord? The idea behind it is to redirect federal spending towards the priorities of "old" America. This includes extending tax breaks, abolishing tipping taxes in the service industry, and eliminating overtime pay taxes.

However, for Elon Musk, this bill poses a threat not only to his business but also to the entire logic of technological development in the US. From the businessman’s viewpoint, directing budget flows towards subsidizing low-return industries and pulling them away from venture economics is strategically dangerous.

The confrontation between Musk and Trump is not just an argument. It is much deeper. On one pole, you have the old Republican approach to the economy: a strong state that stimulates industry, employment, and the military sector. On the other, you have the new technological paradigm, where value is created in intangible assets, intellectual property is more important than manufacturing capacity, and growth is defined by the ability to scale a product, experts say.

According to specialists, Musk saw not only a threat to his profits in the new bill but also a risk to the future.

The paradox of the situation is that both sides are right in their own way. However, the attempt to accelerate the technological transition while ignoring social issues leads to a deepening of inequality and the rise of populism. Meanwhile, artificially maintaining industrial forms of employment is a strategic trap that could severely slow down economic growth. A state torn between these two ideologies risks losing strategic leverage. It no longer operates as a subject of planning but becomes a battleground between competing forms of capital. Sadly, current President Donald Trump seeks to avoid that. As for Elon Musk, his actions are more focused on technology, rather than governmental interests, analysts comment on the situation.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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