Billionaire hedge fund manager and Trump ally John Paulson has revealed [1] potential plans for significant federal spending cuts if chosen as Treasury Secretary in a potential second Trump administration.
Paulson detailed his approach during an appearance on “Fox & Friends,” where he discussed targeting subsidies and benefits he deems unnecessary or unfair to taxpayers.
Notably, Paulson highlighted plans to collaborate with business magnate Elon Musk, who has also expressed interest in streamlining government spending.
Paulson pointed to the substantial subsidies directed toward clean energy initiatives as a major area for budget reduction. “The government is now subsidizing, to the tune of $1 trillion, the Green New Deal.
That’s subsidies for electric vehicles, subsidies for solar panels, subsidies for wind,” Paulson stated.
He questioned the fairness of these policies, noting, “Why should hardworking Americans pay taxes, give it to the government, and then see that money handed to a car buyer or homeowner in California to subsidize their purchase of an electric vehicle? That’s not fair to people who aren’t driving electric vehicles.”
He clarified that while he supports electric vehicles, he opposes taxpayer funds subsidizing them, adding that eliminating these subsidies would save approximately $1 trillion and help bring down overall costs.
Paulson further suggested cutting federal spending allocated to benefits for illegal immigrants, estimating an additional $150 billion in savings. “The federal government was estimated to have paid $150 billion for illegal immigrants last year through various subsidized programs. One way to reduce spending, as Trump has committed, is to ensure no federal benefits for illegal immigrants,” he said.
Paulson emphasized that such cuts could preserve tax dollars for programs benefiting U.S. citizens.
Elon Musk, who appeared alongside Trump at a rally in New York City’s Madison Square Garden last weekend, estimated that $2 trillion could be cut from the federal budget, which currently stands at $6.5 trillion.
Elon Musk on D.O.G.E:
“I think we can reduce the annual federal budget by atleast $2 trillion per year. Your tax money is being wasted and the Department of Government Efficiency is going to fix that.” pic.twitter.com/isu5ZHOaGz [3]
— DogeDesigner (@cb_doge) October 27, 2024 [4]
Trump has praised Musk’s financial acumen, hinting that he would play a role in helping streamline costs within a future Trump administration.
Speaking in an earlier interview with Maria Bartiromo, Trump said Musk was a “great cost-cutter” and referenced Musk’s assurance that he could reduce government spending without negatively impacting services.
Trump clarified that while Musk is not seeking a formal cabinet position, he wants to contribute to cost-cutting efforts.
Speculation has grown around Paulson’s potential nomination as Treasury Secretary, a position he could assume if Trump is re-elected in the 2024 election.
When asked about his key priorities for the role, Paulson highlighted the need to extend Trump-era tax cuts, which he credited with stimulating economic growth. “The tax policy was very, very helpful. The economy grew. That’s the most important thing,” Paulson remarked during an interview on “Mornings with Maria.”
Paulson also underscored his broader goals, which include curbing public spending by reducing federal subsidies, imposing tariffs to protect American industries, and working with Musk to cut regulatory costs and decrease the number of regulations that, he argues, burden businesses.
Elon Musk shared his vision for a 2nd Trump presidency, calls on Americans to pull friends and family out to the polls.
Here is his full speech:
“Your money is being wasted and the Department of Government Efficiency is gonna fix that.”
“We’re gonna get the government off your… pic.twitter.com/eHSX1DOv5M [6]
— Collin Rugg (@CollinRugg) October 27, 2024 [7]