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By Jesus Mesa and Gabe Whisnant
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Elon Musk has raised concerns over a Republican-backed budget resolution supported by President Donald Trump, warning that the legislation could significantly worsen inflation and drive the U.S. economy toward bankruptcy.
Musk, in a repost reply to a post by Representative Thomas Massie, the only GOP member of Congress to vote down the resolution, alleged the reported spending in the resolution would continue to drive inflation.
Why It Matters
The budget resolution, which includes $4.5 trillion in tax cuts over the next decade and anticipates $2 trillion in spending reductions, also raises the national debt ceiling by $4 trillion. Despite Republican leaders celebrating the bill as a step toward implementing Trump's economic vision, critics—including Musk—argue that the numbers don't add up.
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What To Know
Musk, the world's richest man and a senior adviser to Trump, reiterated his concerns about government spending in a social media post Friday.
"All government spending is taxation. This point really needs to be hammered home," Musk wrote. "Whatever is not directly taxed is taxed in the form of inflation, as the government prints more money. Inflation is the worst tax of all, as it punishes those who are just barely making ends meet or have gathered some savings."
Despite concerns from fiscal conservatives, the Trump-backed budget resolution narrowly passed the House in a 217-215 vote on Tuesday, moving the administration closer to enacting its sweeping economic agenda.
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Massie, who broke with his party, warned that the bill would increase the federal deficit rather than reduce it.
"If the Republican budget passes, the deficit gets worse, not better," he wrote on social media.
Massie further criticized the plan's long-term impact, stating, "The GOP Budget Resolution that passed the House this week increases the debt limit from $36 trillion to $40 trillion and spends enough to increase the debt from $36 trillion to $56 trillion over the next 10 years. But yay for tax cuts! I'm the only Republican who voted no."
However, despite Musk's warnings, Trump has dismissed concerns that the budget will harm the economy.
"We're cutting waste and making government work for the people," Trump said at a recent press conference. "This is about putting America first, and that's exactly what we're doing."
What People Are Saying
Kentucky Representative Thomas Massie on X, formerly Twitter: "If the Republican budget passes, the deficit will worsen, not improve."
Elon Musk, replying to Massie's post on X: "All government spending is taxation. This point really needs to be emphasized."
House Speaker Mike Johnson on X: "There may be more than one. But they'll get there. We're going to get everybody there. This is a prayer request. Just pray this through for us, because it is very high stakes, and everybody knows that."
What Happens Next
The passage of the budget resolution in the House is just one step in a longer legislative process. The bill now faces scrutiny in the Senate, where moderate Republicans and Democrats are expected to push for significant changes.
Meanwhile, Trump and his allies will continue lobbying for the budget's approval, arguing that tax cuts will drive economic growth and make the U.S. more competitive.
Update 2/28/25, 1:21 p.m. ET: This article was updated with additional information.
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