At a critical moment, a public break! What does Musk's criticism mean for Trump's most important economic policy?

Wallstreetcn
2025.06.05 00:39
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Elon Musk's opposition comes at a critical time when the "Big Beautiful" bill faces a key test in the Senate. With Democrats expected to unanimously oppose it, Republicans can afford to lose at most 3 votes out of the 53 seats in the Senate; otherwise, the bill will die in the womb. Considering that the U.S. debt ceiling is about to be exhausted, if Musk's criticism leads to the bill being blocked in Congress, a debt default could come even sooner

Elon Musk suddenly "turned against" and publicly criticized Trump's tax reform bill.

On Tuesday local time, Musk posted a series of messages on X, condemning the "Big Beautiful" tax and spending bill under consideration in the Senate, calling it "an appalling abomination," and bluntly stating that "those who vote for it should be ashamed."

On Wednesday, Musk further urged voters to contact their congressional representatives to express opposition: "Bankrupting America is unacceptable! Repeal this bill!"

He also publicly expressed support for a proposal that "current members of Congress should not be re-elected once the deficit exceeds 3% of GDP."

After serving as a "special government employee" in the Trump administration for 130 days, Musk announced his resignation last week and immediately transformed into a fierce critic of the tax reform bill.

This abrupt change is shocking. Last Thursday, Musk was all smiles meeting with Trump in the Oval Office, where the latter was extolling the importance of the bill. Just a few days later, he directed a series of sharp social media posts at this bill, which is seen as a core achievement of Trump's second term.

Deepening Divisions Within the Republican Party, Bill Faces Key Test in the Senate

Musk's opposition comes at a critical time for the "Big Beautiful" bill in the Senate.

In the House of Representatives, nearly all members supported the bill except for three Republicans, but the situation in the Senate is far from optimistic.

In particular, hardline Republican budgeters in the Senate, such as Rand Paul from Kentucky, Mike Lee from Utah, and Ron Johnson from Wisconsin, have made it clear that they will not vote for the current version unless there are significant spending cuts.

Musk has been continuously retweeting critical articles from Paul and Lee on X, further amplifying these voices, with some articles even stating that this is "Rand Paul and Elon Musk taking on Donald Trump."

Meanwhile, if the hardliners push for cuts to popular social programs, moderate Republicans like Lisa Murkowski from Alaska and Susan Collins from Maine may protestPreviously, Murkowski did not directly comment on Musk's influence, but candidly stated in a public program that he "is an influential voice, and his words carry weight."

With Democrats expected to unanimously oppose it, Republicans can afford to lose at most 3 votes out of 53 seats in the Senate; otherwise, the bill will be stillborn.

Musk's intervention has undoubtedly pushed this delicate political game to a boiling point.

The debt ceiling is on the "edge of a cliff"

In the face of Musk's fierce criticism, Trump himself has not directly responded, but allies in the White House and Congress have begun to "put out the fire."

White House Press Secretary Karoline Leavitt stated on Tuesday that Trump "is already aware" of Musk's views on the bill, but will still insist on pushing it forward.

According to media reports, the White House is attempting to attribute Musk's opposition to the bill's cuts to green energy subsidies, particularly the elimination of tax incentives for electric vehicle companies like Tesla. Additionally, Trump's withdrawal of the nomination of Musk ally Jared Isaacman to head NASA is also seen as one of the triggers of the tense relationship.

In Congress, Trump's staunch supporters, such as Senator Lindsey Graham, are trying to ease the situation, stating that the bill "is not a disgrace" and suggesting that spending cuts can continue after its passage. House Speaker Mike Johnson countered Musk's criticisms in a closed-door meeting and attempted to reassure Republican members, alleviating the unease brought about by Musk's "expulsion" threat.

However, whether these efforts can quell the storm remains uncertain.

Trump previously expressed a desire to sign the "Big Beautiful" bill before Congress adjourns on July 4, which primarily aims to raise the U.S. debt ceiling by $4 trillion. Treasury Secretary Yellen has warned that if the debt ceiling is not raised before August, the U.S. will face an unprecedented risk of default.

One of Musk's reasons for opposition is his concern over the unsustainability of U.S. debt. He warned that the bill would exacerbate the budget deficit and burden Americans with heavy debt.

Ironically, if his criticism leads to the bill being blocked in Congress, the "doomsday" of debt default may come even sooner.