WASHINGTON, USA — Billionaire entrepreneur Elon Musk voiced his concerns over the potential inflationary effects of the newly passed Republican budget resolution, aligning himself with Rep. Thomas Massie (R-Ky.), the only GOP member of Congress to oppose the measure.
In a reposted reply to Massie’s criticism of the budget, Musk wrote on X Friday, February 28, 2025.
“All government spending is taxation. This point really needs to be hammered home. 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.”
All government spending is taxation.
This point really needs to be hammered home.
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… https://t.co/pMRI09PcIo
— Elon Musk (@elonmusk) February 28, 2025
The budget resolution, which narrowly cleared the House on Tuesday, is a major step toward advancing former President Donald Trump’s economic agenda.
It includes approximately $4.5 trillion in tax cuts over the next decade, with the intent of extending the 2017 tax reductions set to expire later this year.
The plan assumes that lost revenue will be partially offset by $2 trillion in spending cuts and a $4 trillion increase in the nation’s debt ceiling.
The resolution also proposes substantial increases in spending on defence, border security, and energy exploration.
Massie Stands Alone in GOP Opposition
Massie, a longtime fiscal hawk, opposed the resolution on the grounds that it would worsen the federal deficit. He took to social media to explain his decision, writing:
“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 in 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.”
Massie further warned, “If the Republican budget passes, the deficit gets worse, not better.”
His opposition to the resolution underscores an ongoing divide within the Republican Party, with some lawmakers prioritising deficit reduction over tax cuts and spending increases.
Inflation Concerns Amid Fiscal Uncertainty
Musk’s comments echo concerns voiced by economists who argue that unchecked government spending can contribute to inflation.
While the resolution’s supporters claim tax cuts will stimulate economic growth, critics argue that the increased national debt and spending could further strain the economy.
The resolution now heads to the Senate, where it is expected to face additional debate and potential amendments before a final vote.
