John Paulson, a billionaire investor and a close ally of former President Donald Trump, has revealed his plans to work with Elon Musk on substantial federal spending cuts if he were to be appointed Treasury secretary in a second Trump administration.

What Happened: Paulson expressed his intentions to extend Trump’s 2017 tax cuts and collaborate with Musk to reduce federal spending, particularly by eliminating subsidies for green energy in the Inflation Reduction Act, which he referred to as the Green New Deal, reported The Wall Street Journal on Tuesday.

"All of these tax subsidies for solar, for wind, inefficient, uneconomic energy sources. Eliminate that. That brings down spending," Paulson said.

Paulson, 68, has been a close associate of Trump for over a decade. His views are highly regarded due to his close ties with the former president and his extensive involvement in GOP politics.

Paulson has donated to Republican political operations such as the Senate Leadership Fund and is a trustee of the Manhattan Institute, a conservative-leaning think tank.

In the interview, Paulson also suggested that his potential responsibilities could extend to energy and trade. He indicated that he would work with Trump to promote energy production and implement strategic tariffs.

See Also: Tesla Bull Says Elon Musk-Led EV Giant Is No Longer Seen As An Auto Company By Investors

Why It Matters: Musk has floated the idea of a “Department of Government Efficiency,” or D.O.G.E., which aims to streamline federal spending by overseeing various agencies. Musk has emphasized the need to reduce the number of federal agencies, which he claims number around 438.

During a Trump rally in New York, Musk was introduced as the “co-founder of the Department of Government Efficiency,” further highlighting his involvement in this initiative. The idea has gained traction, especially among supporters of the Dogecoin (CRYPTO: DOGE) community, with Musk’s references to the cryptocurrency meme.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote