Musk attacks Trump: Tax reform hits poor Americans hard!

Musk attacks Trump: Tax reform hits poor Americans hard!

Washington, USA - Donald Trump’s current law, also known as “Big Beautiful Bill”, was adopted in the House of Representatives in May 2025. The law provides for permanently extending tax relief from Trump's first term in office, which leads to strong controversy. In the Senate, the project could encounter considerable resistance, especially by members of the Republican Party, which are against the planned raising of the debt limit and the required higher expenses. According to [Kleine Zeitung] (https://www.kleinezeitung.at/service/newsticker/aussenpolitik/19758475/massive-Musk- Critical Critics), the White House reacted to criticism, but the answer was cool. Presidential spokeswoman Karoline Leavitt stated that President Trump was informed about the opinions of Elon Musk about the law.

Elon Musk, the well -known entrepreneur, expressed sharp criticism of the law and received support from the democratic Senator Bernie Sanders. Sanders noticed on the X platform that Musk was right with his criticism. According to Musk, the richest Americans would receive tax reliefs of $ 664 million, while at the same time cuts in the food supply aids for the needy of $ 290 million were planned.

economic effects and concerns

The current plans for tax reform tighten the already worrying financial situation of the United States, whose public debt is now 120 percent of GDP. This development goes hand in hand with dwindling confidence in the American economy, formulated by ZDF. Investors react nervously, which is reflected in rising yields of long-term US state bonds. The yields of the 30-year bonds have reached 5.15 percent, the highest value in almost two years.

The emerging nervousness in the markets is particularly worrying, as many investors fear a growing household hole. This is reinforced by warnings of rating agencies such as Moody’s, who have downgraded the creditworthiness of the United States, and the assessments of Finance Minister Scott Bessent, who warns of a non -sustainable debt path. The state's interest burden could be estimated at $ 880 billion in 2024, which corresponds more than the entire defense budget.

further provisions of the draft law

The law package not only includes private tax relief, but also many measures that affect companies. One central goal is to permanently establish and modify regulations of the Tax Cuts and Jobs Act (TCJA), which is applicable in the USA, which expires at the end of 2025. Economists warn that the poorest households could be heavily burdened by the planned cuts in social programs such as medicaid and state food aid, of which over 70 million US citizens are dependent. This was also emphasized by Ebner Stolz.

On May 22, 2025, the draft law was accepted in the House of Representatives, and now it is in the Senate for further advice. Experts expect a final farewell until the end of June 2025, with the entry into force of the law on July 4, 2025, provided the president signed it. Companies are asked to analyze the potential effects of tax changes at an early stage and to make appropriate preparations.