President Donald Trump is aiming to reduce the financial burden on American households and businesses by leveraging Republican support in Congress for a series of tax cuts and policies aimed at stimulating the economy. Notably, the proposed changes include allowing oil and gas producers to expense 100% of their capital spending.
Trump emphasized his economic vision, stating, “If you buy something that is going to be good for our country, we’re going to let you expense it.” He also outlined plans for sweeping tax cuts that would benefit families, workers, and companies. This includes eliminating taxes on tips, potentially removing taxes on Social Security, and abolishing taxes on overtime pay.
On Truth Social, Trump praised Congress for its collaborative efforts, calling it a “SPECTACULAR job of working together as one unified, and unbeatable, TEAM.” He urged both chambers to pass the House Budget to “kickstart” the reconciliation process and move toward the passage of a unified, comprehensive bill.
The proposed budget bill includes $4.5 trillion in tax cuts over the next decade, extending tax breaks introduced during Trump’s first term and adding new initiatives from his second campaign, such as the elimination of taxes on tips.
Trump has consistently highlighted the importance of the energy sector to the nation’s economic growth and prosperity. He has taken immediate action to support the industry, including overturning the Biden administration’s suspension on new LNG export terminal approvals and easing regulatory hurdles for oil and gas exploration.
However, despite these moves, oil producers have indicated they have no immediate plans to increase production unless global prices rise significantly. With Trump advocating for an end to the war in Ukraine—an effort that Secretary of State Marco Rubio claims could lead to the lifting of sanctions on Russia—there are concerns that global oil prices may decline rather than increase in the short term.