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Billionaire hedge fund supervisor John Paulson told The Wall Street Journal that he would work with Elon Musk in a possible second Trump administration as he seeks a slot within the former president’s cabinet.
Paulson informed the Journal that, if nominated for Treasury Secretary, he would prioritize extending Trump’s 2017 Tax Cuts and Jobs Act and “working with Musk to scale back federal spending.” Paulson added that he hasn’t talked to Musk a couple of team-up.
Whereas Musk hasn’t mentioned his precise plans to slash the federal finances, Paulson stated he wold purpose to minimize the Inflation Discount Act’s subsidies for inexperienced vitality, which Trump has attacked. The IRA gives $369 billion in tax breaks and subsidies for clear vitality, and has helped push corporations to make investments $129 billion in associated initiatives, in accordance to Manufacturing Dive.
“All of those tax subsidies for photo voltaic, for wind, inefficient, uneconomic vitality sources,” Paulson informed the Journal. “Eradicate that. That brings down spending.”
Musk has agreed to lead a hypothetical Division of Authorities Effectivity, which might purpose to conduct a “full monetary and efficiency audit of the complete federal authorities” and suggest reforms. Though his corporations have been acquired numerous government dollars, and Tesla (TSLA-0.75%) advantages from the IRA’s tax credit for electrical automobiles, he helps ending tax subsidies for automakers.
Earlier this week, Musk stated he would cut federal spending by “no less than” $2 billion, with out offering additional particulars. The federal authorities has spent $6.75 trillion in fiscal 12 months 2024, in accordance to the Treasury Division.
Greater than half of that spending went to Social Safety and Medicare — which Trump has stated he won’t “cut one penny from” — in addition to curiosity on federal debt and protection. Trump’s smorgasbord of tax proposals are poised to hasten Social Safety’s insolvency, in accordance to a latest report by the nonpartisan Committee for a Accountable Federal Price range.
Paulson is considered one of a number of candidates Donald Trump’s marketing campaign is contemplating for Treasury Secretary, alongside names like former commerce ambassador Robert Lighthizer — who has been meeting with investors groups to focus on Trump’s tariff proposals — and Key Sq. CEO Scott Bessent. Amongst different issues, Bessent has proposed an unprecedented plan for Trump to remove Federal Reserve Chair Jerome Powell, and has change into his go-to economic advisor.
Paulson made his fortune — his web price presently stands at $3.8 billion, per Forbes — by betting in opposition to subprime mortgages throughout the 2007 credit score bubble. An occasion hosted at Paulson’s Palm Seaside, Florida, house in April raised $50.5 million for Trump.
Billionaire John Paulson appeals to Elon Musk for Trump cabinet job qz.com 2024-10-30 19:03:52
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