Musk and Sanders against Trump's tax plan: debt crisis threatens!

Musk and Sanders against Trump's tax plan: debt crisis threatens!

Washington, USA - On June 3, 2025, the political situation in the United States is characterized by an intensive dispute over the debt limit. A recently adopted draft law of President Donald Trump, also known as a "great beautiful law", has achieved a narrow majority in the House of Representatives. However, the project in the Senate is on the brink, since several Republicans resist the planned raising of the debt limit and the associated expenses. The White House is unimpressed by the critical voices, as the press spokeswoman Karoline Leavitt confirmed: Trump remains firm to his law.

In the context of these developments, the entrepreneur Elon Musk expressed himself extremely critically about the tax aspects of the law. He called the tax law a "disgusting hideousness" and questioned the effects on the needy. Bernie Sanders supported Musk in his critical attitude and pointed out that while the richest Americans benefited from $ 664 million in tax relief, at the same time 290 million dollars for the care of the needs of the needy.

conflicts in congress

In the middle of these debates, US President Joe Biden and the opposition leader Kevin McCarthy agreed on an agreement to raise the debt limit in order to avoid an impending loss of payment. Biden asked both chambers of the congress to pass this agreement quickly. The final legal text should be completed in the next few days, with many details still unclear. McCarthy announced that a coordination in the House of Representatives should take place on Wednesday.

The agreement has been described as a significant step towards reducing government spending and the protection of important social programs for the working population. However, Finance Minister Janet Yellen warned of the economic consequences of insolvency that could occur without agreement from June 5. The legally defined debt limit of $ 31.4 trillion was exceeded in January and since then the government has taken exceptional measures to prevent insolvency.

reactions to the draft law

Despite the agreement on an increase in the debt limit, there are resistances within the two major parties that could threaten the majorities in the congress. The pressure to achieve savings in the social area and to bring about changes in the area of "tax loopholes" keeps the negotiations on an exciting course. Musk, who has donated more than $ 250 million for Trump's election campaign in recent years and has occasionally considered the President to be confidante, has shown signs of a weakened influence in the Trump environment in recent months.

It remains to be seen how the situation will develop and whether the agreement will exist in the congress. The political landscape in the United States remains tense, while both Trump and Biden try to enforce their respective plans.

More information can be found in the reports of krone.at and daily news. .