Elon Musk Criticizes Donald Trump's Tax Legislation

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Billionaire Tesla CEO Elon Musk is leaving United States President Donald Trump’s administration, after leading a tumultuous efficiency drive, during which he upended several federal agencies, but ultimately failed to deliver the generational savings he had sought.

Musk’s “off-boarding will begin tonight”, a White House official told the Reuters news agency on Thursday AEST, confirming his departure from government and his role as the head of the Department of Government Efficiency (DOGE).

Earlier in the day, Musk posted on his social media platform X to thank Trump as his “scheduled time as a special government employee comes to an end”.

Musk did not have a formal conversation with Trump before announcing his exit, according to a source with knowledge of the matter, who said his departure was decided “at a senior staff level”.

While the precise circumstances of his exit were not immediately clear, he leaves a day after criticising Trump’s marquee tax bill, calling it too expensive and a measure that would undermine his work in government efficiency.

Some senior White House officials, including deputy chief of staff Stephen Miller, were particularly irked by those comments, and the White House was forced to call Republican senators to reiterate Trump’s support for the package, a source familiar with the matter said.

Elon Musk’s tumultuous time as a government employee

While Musk remains close to Trump, his exit comes after a gradual but steady slide in his standing.

Shortly after his inauguration, Trump selected Musk to lead the newly created DOGE.

At the Conservative Political Action Conference in February, he brandished a red metallic chainsaw to wild cheers.

“This is the chainsaw for bureaucracy,” he declared.

On the campaign trail, Musk had said DOGE would be able to cut at least US$2 trillion ($3.11 trillion) in federal spending.

Elon Musk and Donald Trump in the Oval Office. Trump is sitting down, while Musk is standing near him, arms folded.

Elon Musk was granted unprecedented authority by Donald Trump to reduce government spending, but his time in Trump’s administration was marked by turbulence. Source: Getty / Andrew Harnik

Musk did not hide his animosity towards the federal workforce, and he predicted that revoking the “COVID-era privilege” of telework would trigger “a wave of voluntary terminations that we welcome”.

But some cabinet members who initially welcomed Musk’s outsider energy became wary of his tactics, sources said.

Over time, they grew more confident, pushing back against his job cuts, encouraged by Trump’s reminder in early March that staffing decisions rested with department secretaries, not with Musk.

Musk clashed with three of Trump’s most senior cabinet members: secretary of state Marco Rubio, transportation secretary Sean Duffy and treasury secretary Scott Bessent.

Navarro dismissed the insults, saying: “I’ve been called worse.”

At the same time, Musk started to hint that his time in government would come to a close, while expressing frustration at times that he could not cut spending more aggressively.

“The federal bureaucracy situation is much worse than I realised,” Musk told The Washington Post this week.

“I thought there were problems, but it sure is an uphill battle trying to improve things in D.C., to say the least.”

Elon Musk and Donald Trump, sitting in a red car, with the door open.

Elon Musk, the world’s richest person, has defended his role as an unelected official in Trump’s administration. Source: AAP / AP

Musk’s political activities had drawn protests, and some investors called for him to leave his role as Trump’s adviser and focus more closely on managing Tesla, which had experienced declines in sales and its stock price.

He has defended his role as an unelected official who was granted unprecedented authority by Trump to dismantle parts of the US government.

Having spent nearly US$300 million ($466 million) to back Trump’s presidential campaign and other Republicans last year, he said earlier this month he would substantially cut his political spending.

“I think I’ve done enough,” Musk said at an economic forum in Qatar.

DOGE ‘mission’ will continue

Musk’s 130-day mandate as a special government employee in the Trump administration was set to expire around 30 May.

The administration has said DOGE’s efforts to restructure and shrink the federal government will continue.

“The DOGE mission will only strengthen over time as it becomes a way of life throughout the government,” Musk said on X.

Trump and DOGE have managed to cut nearly 12 per cent, or 260,000, of the 2.3 million-strong federal civilian workforce largely through threats of firings, buyouts and early retirement offers, a Reuters review of agency departures found.

At the same time, DOGE has hit a number of roadblocks, with federal courts at times propping back up agencies shortly after DOGE had moved to eliminate them.

In some cases, staff and funding cuts have led to purchasing bottlenecks, increased costs and a brain drain of scientific and technological talent.

Departure comes after criticising Trump’s tax bill

This week, Musk criticised the price tag of Republican tax and budget legislation making its way through Congress.

“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,” Musk told CBS News.

“I think a bill can be big or it can be beautiful. But I don’t know if it can be both,” Musk said in the interview.

Trump later expressed dissatisfaction with some provisions of the bill.

What is Trump’s tax bill?

On 22 May, the US House of Representatives passed the sweeping tax and spending bill that would enact much of Trump’s policy agenda. It would also leave the country with trillions of dollars more in debt.

The bill, which was passed by a single vote, will add about US$3.8 trillion ($5.9 trillion) to the federal government’s US$36.2 trillion ($56.2 trillion) in debt over the next decade, according to the nonpartisan Congressional Budget Office.

The US Senate is now considering the measure.