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Yahoo
04-07-2025
- Business
- Yahoo
Taxes, energy, and healthcare: 3 ways that Trump's megabill impacts the business world
Lawmakers moved Donald Trump's "One Big Beautiful Bill" to the president for his signature and fulfilled a self-imposed deadline to pass it by July 4th after a series of intense and emotional debates consumed the past week on Capitol Hill. In the end, the megabill moved through the Senate on a 50-50 tally that required Vice President JD Vance to break the tie before the 870-page bill passed the House a few days later in a vote of 218-214. The process proved exceptionally contentious largely over healthcare provisions that are set to extract hundreds of billions in government savings but could cause millions to lose coverage. Medicaid and the inclusion of a $5 trillion debt ceiling increase were just two of the most controversial pieces of a complex bill that is set to reshape whole swathes of the US economy, especially around taxes, energy, and healthcare. It's a bill also set to be felt keenly in American pocketbooks with provisions like no taxes on tips, cuts to student loans and the Pell Grant program, changes to 529 plans for education expenses, an increase in state tax deductions, and a range of other provisions that both business and consumer groups will be digesting for months. Clean energy companies are already paying perhaps the keenest attention, with government support for EVs and solar projects set to be eliminated in the years ahead due to changes in the bill. Tesla (TSLA) CEO Elon Musk emerged during final negotiations as the top business-world critic attacking the bill's price and how it treats clean energy. He said in recent days that the $3.3 trillion increase in debt expected from the bill makes a "mockery" of his work at the Department of Government Efficiency (DOGE). Economists have likewise noted the final price tag, which could top $4 trillion. Also critiqued was an accounting gimmick Republicans employed to hide much of that red ink that Maya MacGuineas of the Committee for a Responsible Federal Budget called "a massive cover-up" in a withering statement that added that the bill was "the single most expensive, dishonest, and reckless budget reconciliation bill ever." Silicon Valley also has questions after a last-minute change stripped a closely-watched artificial intelligence provision. But a range of GOP priorities that were included — from increased funding for border enforcement to money for America's 250th anniversary celebration next year — pushed the bill over the line with many in corporate America also in favor and focused on the tax piece. Business Roundtable Chair Chuck Robbins, the CEO of Cisco (CSCO), offered following the final vote that the bill would allow "American businesses to better plan, invest and build for the future." Trump for his part worked relentless to flip votes and get the bill passed calling it at one point the "greatest bill ever passed." Here is a closer look at three ways the current version the bill would impact the business world. A centerpiece of the bill — and far and away the source of the most expensive provisions — surrounded taxes. The bill's main impetus has long been to permanently extend tax cuts for individuals contained in the 2017 Tax Cuts and Jobs Act, which Trump signed into law on a temporary basis during his first term. The bill would represent a continuation of the status quo for taxpayers. As one example, the bill is set to mean America's highest earners will carry on with a top rate of 37%. The bill also provides new tax credits for individuals by fulfilling signature Trump campaign promises — albeit slightly less fulsomely than in the House version — via the elimination of taxes on tips, overtime, and car loan interest. It also offers an expanded standard deduction for seniors after Trump promised to eliminate taxes on Social Security benefits. Employees will be able to deduct up to $25,000 annually for tips and overtime. Business owners, meanwhile, are keenly focused on a series of tax deductions that will reinstate credits for corporations for things like property depreciation, capital investments, new factory construction, interest expenses, and research and development costs. Many of these provisions were present in the House version, but only temporarily. Permanency was a key Senate priority and is now included in the bill, even as it increased the price tag by hundreds of billions of dollars. Senate Finance Committee chair Mike Crapo shepherded the tax changes and celebrated passage with a statement that said corporate provisions give "businesses the certainty they need to make the long-term investments that power economic growth." The bill also makes permanent the pass-through deduction at a rate of 20%. That deduction — formally known as the 199A deduction — is focused on often smaller businesses organized as S corporations or partnerships. The Senate version also includes an array of other tax changes, including a $40,000 annual deduction for state and local taxes (SALT) for the coming years, an expanded child tax credit, enhanced credits for "opportunity zones," and so-called MAGA accounts. The effect on the energy sector could also be profound, especially after a last-minute series of changes turned the bill even further against the clean energy industry while offering new support for fossil fuels. The bill has long been expected to phase out Biden-era clean energy tax credits, but the final bill will shut them down faster than many had expected. The proposal to eliminate EV credits would even take effect on Sept. 30 of this year. A late addition to the bill also raised worries that a new tax on wind and solar projects completed after 2027 was in the offing. But a flurry of objections led to a moderation, with the final draft quietly removing that excise tax. "The bill's targeted tweaks to solar and wind tax credits, especially the phaseout language, are a relative market positive given the onerous nature of the previously proposed excise tax," is how Ed Mills of Raymond James summed up the net effects there. At the same time, new last-minute inducements were unveiled for fossil fuels, including one classifying coal as a critical mineral for a government manufacturing credit. "We're doing coal," Trump said in a recent interview on Fox News' "Sunday Morning Futures," where he also called solar energy projects "ugly as hell." It was a mix that led Musk and others to predict that the larger effect of the bill would be to cut off clean energy, hurt the overall energy grid, and perhaps lead to higher utility bills. At one point, Musk called the bill "utterly insane" and vowed that members of Congress who voted yes "will lose their primary next year if it is the last thing I do on this Earth.' The bill is also set to implement major changes to the healthcare system. Healthcare negotiations continued until nearly the literal last minute, and the overall package is set to trim the government's Medicaid spending by around $900 billion in the years ahead. Corners of the sector, like rural hospitals, are set to be most directly impacted. Republican Sen. Collins of Maine flipped against the bill late in the process and explained her no vote afterwards as driven "primarily from the harmful impact [the bill] will have on Medicaid, affecting low-income families and rural health care providers like our hospitals and nursing homes." And the bottom line for patients — according to an accounting from the Congressional Budget Office that came in over the weekend — is that 11.8 million additional Americans would become uninsured by 2034 because of the healthcare provisions. Some that lose coverage would be illegal immigrants, as Republicans often point out, but millions of US citizens are expected to lose coverage if the bill is enacted because of additional requirements to qualify for coverage. This story has been updated with additional developments. Ben Werschkul is a Washington correspondent for Yahoo Finance. Click here for political news related to business and money policies that will shape tomorrow's stock prices
Bloomberg
01-07-2025
- Business
- Bloomberg
Volatile Quarter-End Signals Funding-Market Dysfunction to Come
Rates in the US funding market surged at the end of the quarter in a sign of potentially further dislocations in money markets as Congress lifts the debt ceiling. Volatility intensified on Monday beyond the typical spikes seen at the end of months and quarters. That's fueled concern among some market participants about dysfunctions in the plumbing of the US financial system and the ability of the market to absorb the deluge of bills once the debt ceiling is resolved.
Yahoo
01-07-2025
- Business
- Yahoo
Trump to Consider Deporting Musk: ‘We'll Have to Take a Look,' Says ‘DOGE Is the Monster That Might Have to Go Back and Eat Elon'
The feud between President Donald Trump and Elon Musk is still boiling on the front-burner — with Trump saying he will 'take a look' at whether the U.S. will deport the South African-born tech billionaire. Trump and Musk were one-time close political allies before they had a major rift over the Trump-backed congressional spending bill, which Musk called 'a disgusting abomination.' Musk has continued to slam Trump's 'One Big Beautiful Bill' as 'utterly insane' by adding trillions to the U.S. national debt, raising the debt ceiling by a staggering $5 trillion, and rolling back subsidies for clean energy while introducing a new incentive for coal production. More from Variety Trump Drops Federal Lawsuit Over Ann Selzer Poll, Refiles in State Court Trump and CBS in 'Advanced' Settlement Talks in '60 Minutes' Case as Deal Appears Close Canada Drops Digital Services Tax at 11th Hour, Backing Down After Trump Terminated Trade Talks Over the Issue On Tuesday, the president was asked by a reporter on the White House grounds whether Trump would 'deport' Musk. Trump said, 'I don't know. We'll have to take a look.' Musk holds citizenship in the U.S., Canada and South Africa (where he was born). Trump also suggested that the Department of Government Efficiency, or DOGE — the cost-cutting division unpopular among Americans that Musk led before exiting the administration in late May — might consider slashing incentives that Musk's companies receive from the U.S. government. 'We may have to put DOGE on Elon,' Trump commented. 'You know what DOGE is? DOGE is the monster that might have to go back and eat Elon. Wouldn't that be terrible? He gets a lot of subsidies.' Responding to Trump's remarks about deportation and DOGE, Musk wrote on X, 'So tempting to escalate this. So, so tempting. But I will refrain for now.' In a post Tuesday at 12:44 a.m. ET, Trump wrote on Truth Social, 'Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.' Trump added in the post, 'Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!' On Tuesday, Musk wrote about Trump's spending bill, 'Removal of funding for enforcement of federal contempt of court orders is the actual crux of this spending bill. This is nominally aimed at removal of illegal immigrants, but obviously also enables many other abuses of power by the President.' Musk, who is the CEO of Tesla and SpaceX, had donated about $275 million to his 2024 election campaign. Musk headed DOGE for the Trump administration before he exited as a 'special government employee' in late May. About Musk's criticism of the spending bill, Trump alleged that Musk was unhappy because the bill removed incentives for electric vehicles, which would benefit Tesla. The feud escalated and Musk claimed in a post on X (which he has since deleted) that Trump 'is in the Epstein files,' which he asserted 'is the real reason they haven't been made public.' Trump on Tuesday reiterated his claim that Musk was 'very upset' that the spending bill cuts EV incentives. 'Not everyone wants an electric car!' the president told reporters. Best of Variety Oscars 2026: George Clooney, Jennifer Lopez, Julia Roberts, Wagner Moura and More Among Early Contenders to Watch New Movies Out Now in Theaters: What to See This Week 'Harry Potter' TV Show Cast Guide: Who's Who in Hogwarts?
Independent Singapore
01-07-2025
- Automotive
- Independent Singapore
Musk torches Trump's 'Big Beautiful Bill,' calls for new party to replace 'porky pig' politics
WASHINGTON, U.S.A.: Tech magnate Elon Musk is once more firing up the political landscape, this time with a scathing censure of President Donald Trump's gargantuan expenditure bundle, as the Senate fights to pass the bill before Independence Day. According to the latest Axios report, the contentious regulation, which covers a chart-topping US$5 trillion (S$6.36 trillion) debt ceiling surge, has resurrected strains between Musk and Trump, once partners in both business and politics. Now, their relationship seems to be tattered. 'It is obvious with the insane spending of this bill… that we live in a one-party country — the PORKY PIG PARTY!!' Musk wrote on Monday on his social platform X, alluding to the GOP-Democratic compromise as a swollen political machine. 'Time for a new political party that cares about the people.' In a succession of progressively piercing posts, Musk alleged that legislators were dumping fiscal responsibility and swore political vengeance. 'Every member of Congress who votes to pass the bill should hang their head in shame,' he wrote, adding threateningly: 'They will lose their primary next year if it is the last thing I do on this Earth.' See also Trump conduct 'beyond anything Nixon did': House impeachment chair Conspicuously, Musk professed that if the bill becomes law, he would instantly introduce a new political crusade. 'If this insane spending bill passes, the America Party will be formed the next day,' he asserted. Musk's 'outpouring' comes just weeks after he floated the notion of a new party in an X poll of his readers on Jun 5. His vital assertion — America needs 'an alternative to the Democrat-Republican uniparty so that the people have a VOICE.' The White House swiftly responded, dismissing Musk's diatribe as entrenched in personal interest, alluding to Trump's weekend discussion with Fox News, where the president inferred that Musk was fuming that the bill cuts federal appropriations for electric vehicles. 'I think Elon is a wonderful guy, and I know he's going to do well, always. He's a smart guy,' Trump said, appearing to tone down the fight. Nonetheless, the fissure has grown progressively public in recent weeks. While Musk temporarily walked back previous condemnations, his latest comments specify a defining moment, and possibly, the early seeds of a third-party encounter in 2026 and beyond. As the Senate pushes towards a Jul 4 vote, all eyes are now not just on Capitol Hill, but on Elon Musk, who may be concocting to upset the political showground just as vehemently as he has the technology world.
Forbes
11-06-2025
- Automotive
- Forbes
Musk Vs. Trump Feud: Trump Responds After Musk Expresses 'Regret'
President Donald Trump and Elon Musk's months-long friendship devolved in spectacular fashion last week as the world's richest man and the world's most powerful man engaged in a brutal back-and-forth on their respective social media platforms—though Musk expressed 'regret' for the blow-up a week later that prompted a positive response from Trump. 11:20 A.M., Thursday (June 5)Musk, in his first direct attack on Trump amid a days-long rant against Trump's signature policy bill, reposted a 2013 tweet from Trump that said he was in disbelief and 'embarrassed' Republicans were extending the debt ceiling, captioning the repost 'wise words,' after Trump said Wednesday the debt limit should be 'entirely scrapped' as a provision of the bill, which would raise the debt ceiling ahead of its expected expiration date in August. 12 making his first comments on Musk's criticism of his bill during an Oval Office press conference, insinuated the Tesla CEO opposes his 'One Big Beautiful Bill Act' because he is 'upset' the electric vehicle tax credit was removed, adding he's not sure he'll remain friends with Musk and alleging Musk 'knew the inner workings of the bill.' Trump also suggested Musk is suffering from what he refers to as 'Trump derangement syndrome,' which Trump claims happens when people leave the administration and turn on the president. 12:25 said he didn't turn on the bill after the EV tax credit was removed: 'False, this bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!' Musk tweeted. 12:46 said 'without me,' Trump would have lost the election, Democrats would control the House, and Republicans would have a more narrow majority in the Senate, after Musk donated more than $250 million toward Trump's campaign, accusing Trump in a subsequent tweet of 'such ingratitude.' 2:37 P.M. 'The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts,' Trump wrote, adding, 'I was always surprised that Biden didn't do it!' 2:37 P.M. Trump said Musk was 'wearing thin' at the White House and he 'asked him to leave,' then he 'just went CRAZY!' when the EV tax credit was removed from the bill. 2:48 said it's 'such an obvious lie' and 'so sad' Trump asked him to leave and that he was upset over the EV tax credit. 3:10 P.M. Musk alleged on X, without evidence, the reason the White House has yet to fully release the 'Epstein files' detailing the FBI's investigation into the late, disgraced former financier Jeffrey Epstein is because Trump is implicated in them. 4:09 said he would decommission SpaceX's Dragon spacecraft used by NASA to transport astronauts to the International Space Station. 4:11 P.M. Musk endorsed one user's suggestion that Trump be impeached, writing 'Yes' in response to an X user who wrote 'President vs. Elon. Who wins? My money's on Elon. . . Trump should be impeached and JD Vance should replace him.' 4:26 P.M. Musk said Trump's tariffs will trigger a recession in the second half of the year, after remaining mostly reserved in his previous criticism of the tariffs. 11:16 downplayed his public falling out with Musk to Politico, telling the outlet 'oh it's okay,' as White House officials were reportedly working to de-escalate the situation and set up a call between Musk and Trump. 12:30 appeared to backtrack on his earlier threat to decommission the SpaceX's Dragon spacecraft after a follower urged him not to do so, prompting the billionaire to respond 'Good advice. Ok, we won't decommission Dragon.' 1 A.M., Friday (June 6)Musk signaled he is willing to de-escalate his fight with Trump after hedge-fund billionaire Bill Ackman—who is both a Trump supporter and a Musk ally—tweeted that both of them 'should make peace for the benefit of our great are much stronger together than apart.' Musk replied: 'You're not wrong.' 4 billionaire later reposted a follower who said 'Republicans will likely lose the House in 2026.' 4 signals of a truce, Musk continued to attack the president's allies, such as Steve Bannon, and Trump's signature spending bill. 7 price of Tesla's shares, which plummeted 14% on Thursday amid the clash, is up around 4.4% in premarket trading on Friday morning, after Musk signaled he is open to a truce with Trump. 8:17 told ABC News in a Friday morning interview he was 'not particularly' interested in talking to Musk right now, alleging Musk has 'lost his mind.' 12:06 is 'thinking about' selling the Tesla Model S he bought in March, when he showcased the purchase to the media on the White House driveway in a public show of support for Musk, a senior White House official told Forbes, though The New York Times, also citing an unnamed White House source, reported the car is already for sale. Otherwise, the Musk-Trump feud appeared to simmer in public as of Friday afternoon, with some speculation they could mend fences in a matter of days. Saturday (June 7)Musk deleted his tweet suggesting Trump was in the Epstein files and removed his other post endorsing the impeachment of the president—though a quote tweet expressing skepticism about Trump and Epstein's alleged links was still up as of Saturday morning, as well as Musk's tweet claiming Trump would have lost the election without him. Sunday (June 9)Musk reposted Trump and Vance's criticism of protesters in Los Angeles, including a Trump Truth Social post blasting California Gov. Gavin Newsom and Los Angeles Mayor Karen Bass for opposing the deployment of National Guard troops to the protest scene. Wednesday (June 11)'I regret some of my posts about President Donald Trump last week,' Musk wrote on X. 'They went too far.' 11:50 told the New York Post, 'I thought it was very nice that he did that,' referring to Musk's comments without explicitly saying if he accepted the billionaire's apology. Musk said repeatedly last year he supports eliminating the EV tax credit—diluting Trump's argument he only opposes the bill because it gets rid of the incentive. 'I think we should get rid of all credits,' Musk said in December when asked by a reporter on Capitol Hill if he supports getting rid of the electric vehicle tax credit, Politico reported. The House-passed version of the bill would phase out the $7,500 tax credit for some EV buyers by 2026. $2.4 trillion. That's how much the bill would add to the federal debt over the next decade, according to an estimate by the nonpartisan Congressional Budget Office released Wednesday that estimates it would cost $4.2 trillion, mostly from tax cuts, and save $1.8 trillion. 'I'm very disappointed in Elon. I've helped Elon a lot,' Trump said while sitting next to German Chancellor Friedrich Merz in the Oval Office last Thursday. Musk—who left his White House role last week—has fired off dozens of tweets this week attacking Trump's policy bill over the amount it's expected to add to the federal debt. 'I'm sorry, but I just can't stand it anymore,' Musk wrote Tuesday on X in his initial post bashing the legislation, calling it a 'massive, outrageous, pork-filled . . . disgusting abomination.' Musk attacked Trump directly over the bill for the first time since he began his days-long rant moments before Trump sat down with Merz by reposting the president's 2013 tweet about the debt ceiling. In other tweets last week targeting the 'One Big Beautiful Bill,' Musk threatened Republicans who voted for it, warning that 'in November next year, we fire all politicians who betrayed the American people' and calling for lawmakers to 'KILL The BILL.' Until Trump's comments last Thursday, House Speaker Mike Johnson, R-La.—who shepherded the bill through the House—was the top Republican defending the legislation against Musk's criticism. Johnson said Wednesday Trump is 'not delighted that Elon did a 180.' The bill, passed by the House in a party-line vote last month after last-minute revisions to appease Republican holdouts, is being negotiated by the Senate. Republican leaders have set a July 4 deadline to put the bill on Trump's desk for signage, but GOP resistance in the upper chamber—and some expressions of regret from a few House Republicans who said they were unaware of certain provisions—threaten to delay its passage. The legislation would fulfill Trump's key campaign promises, including an extension of his 2017 tax cuts, no taxes on tips and overtime and additional border security, paid for, in part, by cuts to Medicaid. Tesla shares dropped 14% as Musk clashed with Trump, closing at $284.70 and completely erasing a month's worth of gains it made in May. The fall marked the 11th-worst single trading day for the electric vehicle maker since it went public in 2010, according to FactSet. Musk, who owns about 12% of Tesla excluding options, saw his estimated net worth tumble by $27 billion to $388 billion (he still remains the world's wealthiest person by far). Trump Media & Technology Group's stock closed down 8% at $20.12, bringing shares to their lowest point since April 16. Multiple cryptocurrencies also slumped amid the spat, with ethereum falling 7%, Solana dropping 6% and the Musk-backed dogecoin sliding 9%. Bitcoin prices did not fall as sharply as its competitors' prices, but still sunk by 3% by Thursday evening. Tensions between Musk and Trump were palpable during the joint press conference they held May 30 to mark Musk's last day leading the Department of Government Efficiency. While the two praised each other, their once-lighthearted rapport appeared stiff and uneasy. Musk in particular appeared to be in an odd mood, prompting social media users to claim he was 'tweaking out,' suggesting he may have been under the influence of drugs, as the press conference was held hours after a New York Times report alleging Musk engaged in heavy drug use while he campaigned for Trump last year. Musk also sported a black eye during the press conference, which the Tesla CEO claimed he got from his five-year-old son. 'KILL The BILL': Musk Deepens Rant Against Trump's Signature Policy Legislation (Forbes) Musk Calls For Ending Electric Vehicle Tax Credit—Which Could Help Tesla (Forbes) Musk Cuts Off Reporter Asking About Drug Use Allegations—Including Ketamine, Ecstasy And Adderall (Forbes)
