Billionaire Opposes Trump’s Tax and Spending Bill
Following the signing of a contentious tax cut and spending bill by President Donald Trump on Friday, Elon Musk announced the creation of the America Party to compete against the Republicans in the 2026 U.S. midterm elections. The bill was strongly opposed by Musk, the former head of the Department of Government Efficiency, who claimed it went against Republican pledges to cut spending. Our North America correspondent, Arunad Mukajji, reports on the development from Washington.
Social Media Poll Sparks Party Formation
Musk asked his followers in a poll on his social media platform X on July 4, America’s Independence Day, if they wanted to break away from the two-party system in the United States. Musk announced the America Party after more than a million people responded, with 65% of them voting in favor. Since the survey was restricted to X users, it is unclear whether there is a wider desire for a new political party in the nation, even though the poll captures sentiment among his supporters.
Musk’s Criticism and Trump’s Response
Musk has frequently attacked Trump’s tax and spending plan, claiming that it violates Republican promises to reduce government expenditures. He contends that his ideological commitment to saving money for America is motivated by the worry that the legislation will result in an increase in the federal deficit. Trump has retorted that Musk is against the bill because it would remove incentives for electric vehicles, which could affect Musk’s business, Tesla. In the past, the president has attacked Musk, suggesting that his actions are driven more by his own financial gain than by the good of the country.
Uncertain Political Impact
Although the announcement’s optics are noteworthy, it’s unclear what effect it will have more broadly. Musk’s action seems to be an attempt to gauge how the public and political establishment would respond to a possible third party. As of yet, no significant political reactions have surfaced, and it is unclear how the America Party will develop or impact the 2026 midterm elections. Musk’s split from Trump represents a dramatic change in their once-close partnership as the debate progresses.
