US President Donald Trump says some parts of a controversial tax bill may be up for negotiation after it was criticised by Elon Musk for increasing government debt by up to US$3 trillion ($4.67 trillion).
Mr Musk had previously headed up the Trump administration's so-called Department of Government Efficiency (DOGE), which aimed to slash trillions of US dollars in government spending, before announcing his departure last month.
But in an interview with US broadcaster CBS, the owner of tech giants SpaceX and Telsa said Mr Trump's large tax bill, officially known as the "One Big, Beautiful Bill Act", contradicted DOGE's aims of reducing the federal deficit.
"I was disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing," Mr Musk said.
"I think a bill can be big or it can be beautiful, but I don't know if it can be both. My personal opinion," Mr Musk said.
The US president has repeatedly said the "big beautiful bill" would usher in a new "Golden Age" for the US.
But following Mr Musk's remarks, Mr Trump told reporters he also held concerns about some aspects of the bill.
"We will be negotiating that bill, and I'm not happy about certain aspects of it, but I'm thrilled by other aspects of it," he said.
The bill, which now sits before the US Senate after passing the House of Representatives, aims to shrink social safety net programs to pay for a 10-year extension of deep tax cuts for wealthier taxpayers.
The spending bill is the centrepiece of Mr Trump's domestic policy agenda and could define his second term in the White House.
Independent analysts have warned it could increase the deficit by as much as US$4 trillion over a decade.
Musk steps back from government life
Mr Musk's comments come as he steps back from his government work, rededicating himself to companies like the electric automaker Tesla and rocket manufacturer SpaceX.
He has also said he will reduce his political spending, because "I think I've done enough".
In a separate interview with the Washington Post, Mr Musk said that the "federal bureaucracy situation" he had tried to combat with DOGE was "much worse than I realised".
"I thought there were problems, but it sure is an uphill battle trying to improve things in (Washington) DC, to say the least."
Mr Musk had previously been positive about the opportunity to reshape Washington. He wore campaign hats in the White House, held campaign rallies and talked about excessive spending as an existential crisis.
He was also gushing in his praise of the US president and even sold him a Tesla on the front lawn of the White House.
"The more I've gotten to know President Trump, the more I like the guy," Mr Musk said at one point. "Frankly, I love him."
Mr Trump repaid the favour, describing Mr Musk as "a truly great American".
'Big beautiful bill' heads for Senate showdown
It is unclear what, if any, impact Mr Musk's comments about the bill would have on the legislative debate.
But Mr Trump remains the dominant figure within the Republican Party, and many Republican politicians have been unwilling to cross the president when he applies pressure for his agenda.
The Congressional Budget Office, in a preliminary estimate, said the tax provisions would increase federal deficits by US$3.8 trillion over the decade.
Changes to federal health programs, food stamps and other services would reduce spending by more than US$1 trillion over the same period.
House Republican leaders say increased economic growth would allow the bill to be deficit-neutral or reducing, but outside watchdogs are skeptical.
The Committee for a Responsible Federal Budget estimates the bill would add US$3 trillion to the debt, including interest, over the next decade.
The bill passed the US lower house by one vote, and some Republican US senators now tasked with considering it have expressed concerns about the winding back of benefit programs.
Story By: AFP/AP/Reuters
Original Story link: https://www.abc.net.au/news/2025-05-29/elon-musk-criticises-donald-trump-tax-bill/105350560
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