President Donald Trump’s One Big Beautiful Bill (OBBB) is a comprehensive economic plan aimed at restoring affordability and boosting wages for American workers. Treasury counselor Joseph Lavorgna emphasized that the bill’s three main provisions are designed to stimulate productivity, create jobs, and improve the financial well-being of families across the country.
The first provision of the OBBB is the full expensing of business investment, which allows companies to deduct the full cost of capital expenditures such as new machinery, software, and industrial equipment immediately. This incentivizes businesses to invest in modern technology, leading to increased productivity. As workers have access to more advanced tools, they are able to produce more goods and services, which in turn allows companies to raise wages. Historical data shows that periods of high productivity have often coincided with significant wage growth, which is seen as a key factor in the economic boom during Trump’s first term.
The second major provision of the OBBB is the immediate deduction of the cost of building new manufacturing plants or agricultural structures. This change allows companies to write off the full cost of construction in the first year, rather than spreading it over decades. This is expected to lead to a surge in industrial and construction activity, creating thousands of high-paying jobs. The initial construction phase alone will generate employment in the building and construction sectors, while the completed facilities will then support jobs in manufacturing and agriculture, which benefit from the capital investments described in the first provision.
In addition to these two provisions, the OBBB also eliminates taxes on tips and overtime pay, which will directly increase the income of workers in the service and manufacturing sectors. Lower-tax policies, including the elimination of taxes on certain forms of income, are seen as a way to make work more rewarding for American families. This, according to Lavorgna, will help restore the financial stability of lower- and middle-class households that have been negatively impacted by previous economic policies.
Supporters of the OBBB argue that these measures will not only boost wages but also have a disinflationary effect, which means that as the economy grows and productivity increases, inflation is likely to decrease. This combination of rising wages and falling prices is seen as a powerful way to increase the purchasing power of American families, making everyday goods and services more affordable. The bill is presented as a key component of Trump’s vision for a ‘Golden Age’ economy, where the benefits of economic growth are shared across all sectors of society.
Overall, the OBBB represents a significant shift toward more business-friendly and worker-focused economic policies, as opposed to the previous administration’s approach. The bill is seen as a way to align economic incentives with the needs of American families, ensuring that the benefits of growth are both widespread and enduring. This approach is expected to have a substantial impact on the U.S. economy, influencing not only wages but also the broader financial landscape for businesses and consumers.