Donald Trump and Elon Musk are going all in on their balanced budget vision, but the numbers don’t add up. Trump has been blasting out his plans to slash spending, and Elon is backing him up with an Elon-led Department of Government Efficiency (D.O.G.E) designed to strip down federal agencies.
Congress, economists, and federal judges are already opposing Trump’s proposed tax cuts, warning that they could increase the national debt by up to $11 trillion over the next decade.
The US House and Senate are caught in the crossfire as Trump demands an extension of his 2017 tax cuts, the elimination of taxes on tips and overtime pay, and a wipeout of Social Security benefit taxes—all things that could add at least $5 trillion to the deficit if current federal laws remain unchanged, according to the Committee for a Responsible Federal Budget (CRFB).
Elon’s D.O.G.E under legal fire as states fight back
D.O.G.E. is already facing legal challenges. Last week, a coalition of 14 states sued the administration, saying that Elon’s advisory department has unchecked power over seven federal agencies and that there’s no legal basis for Elon to make personnel decisions or access government data.
Federal judge Tanya Chutkan ruled on Tuesday that the lawsuit can proceed, but she denied an emergency injunction that would have immediately stopped D.O.G.E’s operations. Chutkan wrote in her ruling that while Elon’s influence has created “considerable uncertainty and confusion,” the states failed to prove imminent harm.
Chutkan said, “The court needs specifics, not just a generalized fear of what could happen.” Despite the ruling, Chutkan said she was skeptical about Elon’s authority. She noted that Trump’s own officials “concede there is no apparent source of legal authority granting D.O.G.E the power” to take the actions being challenged in court. She ordered both sides to meet and confer on next steps.
Tax cuts, rising debt, and budget chaos in Congress
“BALANCED BUDGET!!!” Trump posted this month on Truth Social. Elon added on X, “Balanced budget is going to happen.” On Feb. 3, the House approved a budget that calls for $4.5 trillion in tax cuts while simultaneously raising the U.S. debt limit by $4 trillion.
Lawmakers haven’t identified specific spending cuts to offset the gap, but Medicaid, food assistance (SNAP), and clean energy funding from the Inflation Reduction Act are all on the chopping block.
While Trump has hinted at cutting waste and fraud in Social Security and Medicare, an inspector general audit found done in Q4 2024 that only 0.84% of Social Security benefits were issued improperly between 2015 and 2022.
That’s $71.8 billion in overpayments out of $8.6 trillion total. JPMorgan analysts say that number isn’t enough to “bend the cost curve” in any meaningful way.
Meanwhile, Republicans are divided on whether extending Trump’s expiring tax cuts should even count as new debt. Chip Roy, a Texas Republican, warned against “gimmicky” budget tactics.
While Trump is pushing for tax cuts, the military budget is probably gonna increase dramatically. The House wants a $100 billion boost, while the Senate is pushing for $150 billion. On top of that, Republicans are looking at an additional $150 billion or more for border security and stepped-up immigration enforcement.
Even Rand Paul, a Kentucky Republican, is not on board. Paul voted against the GOP’s budget resolution, warning that its “unstated purpose is to increase spending by $342 billion.”
Democrats, meanwhile, are accusing Trump of deception. Brendan Boyle, the top Democrat on the House Budget Committee, said Tuesday that Trump’s tax cuts overwhelmingly benefit the wealthy while doing nothing to balance the budget.
“Donald Trump and his co-President Elon could fully eliminate all spending on foreign aid and education, and they still wouldn’t even come close to balancing the budget,” Boyle said. “And his tax cuts for billionaires add trillions more to the debt.”
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Source: https://www.cryptopolitan.com/trumps-agenda-threatens-doge-and-us-debt/