‘Disgusting Abomination’? Why Elon Musk and Senator Rand Still Can’t Kill the Tax Bill

Elon Musk called it a “disgusting abomination.” Senator Rand Paul warned it would trigger “an avalanche of calamities.” Even Wall Street figures like Jamie Dimon are waving red flags. But here’s the twist: this massive tax bill is still likely to pass.

The bill, pushed by the Trump administration, is projected to add $2.4 trillion to the U.S. deficit over the next decade, according to the Congressional Budget Office. That’s on top of an already sky-high deficit that hit 6.4% of GDP last year. So how does something this expensive, and this controversial, keep moving forward?

Because Not Passing It Is Even Worse (for Politicians)

Let’s break it down. The 2017 Trump tax cuts are set to expire soon. If that happens, income taxes will go up automatically — and no politician wants to go home to voters with that on their hands.

So this new bill is less about reform and more about survival. Senate Majority Leader John Thune basically said it outright: “The alternative isn’t a good one.”

In other words, the political cost of doing nothing is higher than the cost of adding $2.4 trillion to the deficit. That’s why this bill keeps crawling forward, despite the noise.

But Wait — There’s a Tariff Twist that Makes It Messy

Here’s the real issue: while cutting taxes on one side, the administration is raising revenue through tariffs on the other. The CBO says the current tariff plan will bring in $2.8 trillion over the same 10-year window.

That sounds good — until you look closer.

Tariffs act like taxes on imported goods. So while the government earns more money, prices go up for consumers, especially low-income ones. Yale Budget Lab says the poorest 10% of Americans lose 2.5% of their income under the current tariff structure, while the richest 10% only lose 1%. That’s not exactly a “populist win.”

Worse, the tariffs shrink the economy, cutting growth by 0.6 percentage points over a decade and pushing up inflation by 0.4 points immediately, according to the CBO.

Bond Markets, Moody’s, and the Math No One Wants to Do

Even if Congress signs off on the tax bill, it doesn’t mean Wall Street will. JPMorgan’s Jamie Dimon warned last week that the bond market is running out of patience. Moody’s already downgraded the U.S. credit outlook in May, citing unsustainable debt levels.

So far, the bond market has stayed oddly calm. The 10-year Treasury yield actually dropped after the CBO released the deficit numbers. Why? Investors are worried about a slowdown in jobs and services, and weak growth usually pushes yields lower.

But this calm may not last. If investors lose confidence in the government’s ability to manage its books, yields could spike — and that would raise borrowing costs across the board, from mortgages to credit cards.

This Bill Isn’t About Economics — It’s About Optics

Yes, the bill is contradictory. It cuts taxes while raising tariffs. It boosts growth in one area while slowing it in another. But Washington isn’t driven by textbook economics — it’s driven by reelection math.

That’s why even Elon Musk, the world’s loudest billionaire, can’t kill this bill with tweets. The real battle isn’t over the deficit — it’s over who gets to dodge the political fallout when the economic reality eventually hits.