Trump’s One Big Beautiful Bill Aims to Boost Wages and Business Investment

WASHINGTON — The One Big Beautiful Bill (OBBB), a legislative initiative associated with former President Donald Trump, includes provisions designed to increase worker pay and encourage business investment, according to Treasury counselor Joseph Lavorgna.

The bill features three main components intended to improve take-home wages and stimulate economic growth. The first provision allows for permanent full expensing of business investments, commonly known as capital expenditures or “capex.” This measure enables companies to immediately write off the full cost of assets such as computers, industrial machinery, and software. By increasing capital investment, businesses can enhance productivity, which historically has led to higher wages for workers.

The second provision complements the first by permitting companies to deduct the entire cost of constructing manufacturing plants or agricultural structures in the first year. Previously, firms had to depreciate these costs over nearly 40 years. This change is expected to incentivize more rapid investment in physical infrastructure.

The third provision eliminates taxes on tips, which is intended to increase workers’ take-home pay directly.

Lavorgna and other officials have highlighted these measures as part of efforts to make life more affordable for Americans amid concerns about inflation. They contrast the current economic approach with the inflationary period during the Biden administration, when inflation rose at an annualized rate near 5%, compared to less than 2% during Trump’s first term.

The OBBB is presented as a step toward restoring economic conditions that support wage growth and affordability, with officials noting that while challenges remain, progress is underway to address economic difficulties experienced in recent years.