Treasury counselor Joseph Lavorgna has outlined the key provisions of President Trump’s One Big Beautiful Bill (OBBB), which aims to restore affordability and improve wages for American workers. The bill is designed to address economic challenges by stimulating productivity through capital incentives and tax reforms that benefit both businesses and households. Lavorgna highlighted that the OBBB’s measures are part of a broader strategy to create a Golden Age economy under Trump’s leadership.
One of the primary focuses of the OBBB is the expansion of capital incentives. Under the new policy, companies can now fully expense business investments, including equipment such as computers, industrial machinery, and software, in the same year they are purchased. This change is expected to boost productivity as businesses invest in modern tools, allowing workers to produce more efficiently. As a result, companies can offer higher wages to their employees, creating a positive feedback loop for economic growth.
The bill also includes provisions to expedite the construction of manufacturing plants and agricultural structures. Companies can now deduct the full cost of these projects in the first year of construction, significantly reducing the time required for depreciation. This tax incentive is anticipated to drive a surge in industrial activity, leading to high-paying construction jobs and long-term employment opportunities. With the capex incentives, the new manufacturing and agricultural sectors will be equipped with cutting-edge technologies, further enhancing productivity.
In addition to boosting production, the OBBB aims to address inflationary pressures. By increasing the economy’s productive capacity, the policy is expected to have a disinflationary effect, potentially reducing inflation rates. This combination of rising wages and falling inflation could lead to a significant increase in real wages for American workers, similar to the economic conditions during Trump’s first term.
The third major provision of the bill is the elimination of taxes on tips and overtime pay. This measure is intended to provide immediate financial relief to working Americans, particularly lower- and middle-class families. By allowing workers to retain more of their earnings, the OBBB is expected to strengthen household finances and improve overall affordability for everyday Americans.
Lavorgna emphasized that these tax reforms are a crucial step in the broader economic strategy to restore prosperity for all Americans. As the bill takes effect, it is anticipated to create a more dynamic and competitive economy, benefiting both businesses and households through increased productivity, job creation, and improved wages.