Musk and Trump in dispute: Tax reform demands its price!

Musk and Trump in dispute: Tax reform demands its price!

In the past few months, the technology sector in the United States has maneuvered itself in a questionable situation. The upcoming changes in tax policy shows that large companies such as Apple, Alphabet and Microsoft are not only confronted with the competition, but also with ever stricter regulatory framework. According to Ainvest.com runs an important tax benefits that were created by the tax reform introduced in 2017, 2026. These discounts in particular concern reduced tax rates to international profits that could significantly influence the tax burden of multinational companies.

The situation "One Big Beautiful Bill Act", which is available in the Senate, is particularly explosive. The political blockade delays the implementation and so until possible adoption there are also higher tax rates for companies with offshore gains on the brink. This means a potential increase in effective tax rates by 5 to 10%. Companies with well-diversified locations and a strong lobbying presence, such as Microsoft and IBM, should be able to navigate better through these uncertainties.

Elon Musk in the crossfire of politics

Elon Musk is not only in the role of the technology pioneer, but also as head of the Department of Government Efficiency (Doge) and CEO of Tesla/SpaceX in the middle of the political events. He has received over $ 38 billion in federal contracts in recent years, which increasingly raises concerns about possible self -prisoners. Musk is not reserved in terms of his opinion on current draft laws. He criticized Donald Trump's latest tax and expenditure law, which he described as a "political suicide for the Republican Party" and could endanger millions of jobs. In a public post for X, he warned Congressmen who voted for the law, about the consequences of their decisions and threatened consequences in the primary elections in 2026, if the law is adopted, such as Tagesschau.de reported.

his former charm with Trump has deteriorated noticeably, and despite his investment of hundreds of million dollars in Trump's 2024 election campaign, the relationship seems complicated. The proposal to found an "America Party" should reflect the current political situation he describes as a one-party system, and shows how much he wants to challenge the status quo.

tax uncertainties as an opportunity or risk?

For investors, the question arises how best to navigate in such a climate. The technical landscape shows a clear division between companies with diversified sources of income such as Microsoft and those that depend heavily on individual personalities such as musk. An investment strategy that is geared towards companies that can implement their regulatory advantages is crucial. Companies with a solid balance sheet in regulation and lobbying, such as IBM or cyber security companies, could offer the best prerequisites to survive the uncertainties of the market.

In the current mixture, the role of companies that have a high proportion of international business and may suffer from the impending tax increase will also be viewed critically. Recommendations for investors include heavily on cyber security companies such as crowdstrike and fireeye and avoiding riskier investments such as Tesla until the basis and legal challenges have been clarified.

Where the political journey leads and what effects the ongoing discussions on the technology sector and beyond will have to be seen. While the deadline for adopting the Tax and Expenses Act on July 4, it is clear that there is a lot going on in Washington- and Elon Musk will continue to be a moving part of this development.