Wall Street veteran John Paulson has vowed to cut government spending by helping Tesla CEO Elon Musk If he becomes Treasury Secretary under the second Donald Trump administration.
The billionaire investor – who famously made a killing in the 2008 financial crisis by betting $3 billion against bad home loans – said he would work with the owner of the X social media platform, formerly known as Twitter. was, “to reduce federal spending”.
Paulson, who is close to Trump and owns an estimated $4 billion, singled out green projects passed by the Biden-Harris administration under the so-called Inflation Reduction Act.
“All these tax subsidies are for solar, wind, inefficient, uneconomic energy sources,” he told the Wall Street Journal. in an exclusive interview“Remove him. This reduces expenses.”
Repealing the Biden-Harris clean-energy tax breaks could save $921 billion over a decade, according to the Tax Foundation, but it would require Congress to sign off on that plan.
There is no indication yet whether the former president’s longtime aide will be successful in getting the post, but the Journal, citing familiar sources, said he is one of several people being considered. Is.
Trump’s transition team is co-chaired by whom? Howard Lutnick, CEO of Cantor FitzgeraldWho have vowed to fill the next White House with people loyal to the former “Apprentice” star.
Lutnik himself was reportedly involved in the mix Next US Ambassador to Israeltold Fox News on Monday that the next president could cut “$1 trillion” from government spending.
“There is too much waste. The way we buy things in government is disgraceful,” he said.
The US spent $6.75 trillion in the 2024 tax year ending September 30, but raised only $4.92 trillion in revenue. Over the same period, according to the Congressional Budget Office.
This left a $1.38 trillion black hole in Uncle Sam’s accounts. The budget deficit – the difference between spending and income each year – can raise interest rates and slow economic growth.
Paulson did not give any specific targets for spending cuts in his Journal interview.
Whoever becomes the next Treasury secretary will be Trump’s point person among lawmakers, Wall Street and business leaders.
The appointee will be expected to oversee new tax cuts and a potential overhaul of financial regulations, JPMorgan CEO Jamie Dimon said. Under the current administration it was labeled an “attack.”
Other names under consideration by Trump include Scott Besant, founder of Key Square Group and another Trump ally on Wall Street, former trade ambassador Robert Lighthizer and former Securities and Exchange Commission Chairman Jay Clayton.
“I wouldn’t expect a Senate fight,” Paulson said of a potential nomination. “I have good relationships with senators on both sides of the aisle.”
The 68-year-old money man also told the Journal that his role could also include a focus on energy and trade policy, promising to introduce “strategic tariffs” to take down Chinese companies.
He is also a trustee of the Manhattan Institute, a conservative-leaning think tank whose chairman is fellow Wall Street executive Paul Singer, founder of the activist investment firm Elliott Management.
Last month, Paulson threatened to pull his money out of the US if Harris won on November 5 along with Trump megadonors. Saying that his economic plans would “destroy the market.”
Trump has also vowed to appoint Tesla CEO Elon Musk to head a new “government efficiency commission” if he wins next week.
Musk said this week that he could cut at least $2 trillion from the federal budget, but failed to explain how he would rein in government spending.
