Friends,
“The America Party is needed to fight the Republican/Democrat Uniparty,” Elon Musk posted on X, announcing that he’s forming a third party.
Does America need a third party? Possibly, for a reason I’ll get to in a moment.
But America doesn’t need a third party financed by the richest person in the world, who sank a quarter of a billion dollars into making Trump president and was also among the most prolific Republican donors in 2024 (Trump officials are still awaiting $100 million in pledges Musk made this year).
We need a third party dedicated to just the opposite — getting big money out of politics.
Both major parties are far too dependent on big corporations and the ultra-wealthy, although the GOP is far more dependent than are the Democrats.
Just 100 extremely wealthy families invested $2.6 billion in the 2024 election that put Trump back in the White House and Republican majorities in both the House and Senate.
Even if you subtract Musk’s contribution, that’s more than double what billionaire donors contributed just four years ago.
Fully 70 percent of the bounty from the top 100 contributing billionaire families went to Republicans.
Billionaires accounted for almost three-quarters (71 percent) of the total amount used by outside spending groups to attack Democratic presidential candidate Kamala Harris, and over three-fifths (61 percent) of all outside dollars spent praising Trump.
In the three Senate races that gave Republicans control of the Senate, billionaires supplied most Republican outside spending: in Montana, 58.1 percent. Pennsylvania 56.8 percent. Ohio 44.5 percent.
Soon, the billionaires who invested in Trump will get a giant return on their investment, courtesy of Trump’s Big Ugly budget bill.
The Joint Committee on Taxation estimates that by 2027, the richest 0.1 percent of taxpayers (of which the country’s estimated roughly 900 billionaires are a subset) will collectively save $60 billion in federal taxes, due to the Big Ugly.
Clearly, Musk’s purpose in creating a third party has nothing whatever to do with ending this deepening corruption.
He says he wants to unseat Republican lawmakers who backed Trump’s Big Ugly because it will add trillions to the national debt.
“What the heck was the point of @DOGE if he’s just going to increase the debt by $5 trillion??” Musk wrote on X, referring to his so-called Department of Government Efficiency.
Oh, please.
If Musk is really worried about the federal debt, the easiest way to shrink it would be to raise taxes on the wealthy — including himself.
Near-record levels of income and wealth are now concentrated at the very top, yet the rich don’t pay nearly their fair share in taxes.
Consider this: Musk’s 2024 campaign contributions were four times more than what he paid in annual federal income taxes between 2013 and 2018.
In fact, Musk — the richest person in the world — pays a lower tax rate than average Americans.
A ProPublica analysis showed that between 2014 and 2018, Musk’s wealth increased by $13.9 billion, but he paid a “true tax rate” of only 3.27 percent on that growth.
If Musk gives his 14 children his shares of stock when he dies, his heirs won’t be taxed on any of the increases in their value over Musk’s lifetime because of a loophole in the tax laws called “stepped-up basis at death.”
So Musk’s real purpose in starting a third party can’t be to reduce the federal budget deficit. And it’s obviously not to get big money out of American politics.
What is it?
One hint comes in the people from whom Musk is seeking advice for his third party. The New York Times reported yesterday that Musk recently spoke about the task with the blogger Curtis Yarvin.
Yarvin has no particular expertise in the mechanics of American politics, but he comes as close as anyone to being the intellectual godfather of the anti-democracy movement in America.
Yarvin is at the center of a group of libertarian tech bros that includes Peter Thiel and Marc Andreessen. JD Vance has cited Yarvin’s writing.
In Yarvin’s view, real political power in the United States is held by a liberal amalgam of universities and the mainstream press, whose commitment to equality and justice is eroding social order.
He believes democratic governments are inefficient and wasteful. “There is no such thing as ‘autocracy’ versus ‘democracy,’” Yarvin has written. “All government is arbitrary, unlimited and contingent.…All stable regimes are monarchical or oligarchic in practice.”
Democracies, says Yarvin, should be replaced with sovereign joint-stock corporations whose major “shareholders” — wealthy oligarchs — select an executive with total power, who serves at their pleasure. Yarvin refers to the city-state of Singapore as an example of a successful authoritarian regime.
Yarvin criticized Musk’s Department of Government Efficiency for not assuming enough power.
So it seems we’ve come to Musk’s real purpose in starting a third party. Not to reduce the federal debt (which could be done by raising taxes on the ultra-wealthy like Musk). Certainly not to get big money out of politics (Musk is Exhibit A in how big money subverts democracy).
It’s to finish the job Musk’s money in the 2024 election began and his DOGE continued once Trump was in office: the total annihilation of American democracy.
This post has been syndicated from Robert Reich, where it was published under this address.