Elon Musk now echoes concerns raised by Powell, Buffet, Dimon, Dalio: 'Overspending will drive US into debt slavery'

Elon Musk has hit out at US President Donald Trump's signature tax and spending bill, describing it as a "disgusting abomination", in a widening rift between the two. The tech billionaire claimed that interest payments consume 25 per cent of all government revenue. “If the massive deficit spending continues, there will only be money for interest payments and nothing else! No social security, no medical, no defense … nothing,” said Musk.

Earlier this week, Tesla's top boss posted on 'X' saying that the bill would add to the US budget deficit and saddle Americans with "crushing" debt. The budget, which includes tax breaks and more defence spending, was passed by the House of Representatives last month and is now being considered by senators.  "Shame on those who voted for it," said Musk, hinting that he may try to unseat the politicians responsible at next year's midterm elections.

Musk agrees with Powell, Buffett, Dimon, and Dalio

Musk has now echoed concerns raised by US Federal Reserve Chairman Jerome Powell, billionaire investor and Berkshire Hathaway CEO Warren Buffett, Bridgewater Associates founder Ray Dalio, and JPMorgan Chase CEO Jamie Dimon on the rising US debt. 

Billionaire investment manager Ray Dalio had warned that the risks of US debt go beyond credit ratings amid the US government's mounting debt in the current economic scenario. The founder of one of the world's largest hedge funds said that regarding the US debt downgrade, credit ratings understate risks because they rate the risk of the government not paying its debt.

Jamie Dimon had also sounded a warning for the US economy, as he flagged stagflation risk amid multiple challenges like geopolitics, deficits and price pressures. Dimon rejected the idea that the US economy is currently in a “sweet spot.”

Jerome Powell has assured Trump in a meeting held at the White House on May 29 that the Fed would “set monetary policy, as required by law, to support maximum employment and stable prices and will make those decisions based solely on careful, objective, and non-political analysis.”

Trump's new tax bill

The House-passed version of US President Donald Trump’s tax and spending bill would add $2.42 trillion to US budget deficits over the next decade, according to a new estimate from the nonpartisan Congressional Budget Office.

The CBO’s calculation, in its so-called scoring of the “One Big Beautiful Bill,” reflects a $3.67 trillion decrease in expected revenues and a $1.25 trillion decline in spending over the decade through 2034, relative to baseline projections.

Musk attacked the legislation days after leaving a temporary assignment leading the administration’s Department of Government Efficiency (DOGE) initiative to cut federal spending. The House-passed tax bill is forecast to reduce federal revenue by about $4 trillion over a decade, adding about $2.5 trillion to the federal deficit, even with hundreds of billions of dollars in cuts to the US' safety-net programs such as Medicaid and food stamps.

The measure also would aggressively phase out Biden-era tax breaks for electric vehicle purchases and clean energy production, changes that Tesla has criticised. “Abruptly ending the energy tax credits would threaten America’s energy independence and the reliability of our grid,” Tesla Energy, the company’s division focused on solar systems and batteries, wrote in a social media post. The message was later signal-boosted by Musk himself.

Musk also has publicly disagreed with Trump over tariffs, telling investors during a Tesla earnings call in April that he would advocate “for lower tariffs rather than higher tariffs.” Trump administration officials have dismissed CBO projections as inaccurate, saying they fail to account for the economic growth boost the tax cuts, along with tariff hikes and deregulation, will provide.