Scott Bessent said the recently passed tax bill is already reshaping the U.S. economy, driving a surge in capital investment by American businesses while delivering direct financial benefits to working families through lower taxes and higher take-home pay.
Bessent outlined what he described as the most significant elements of the legislation, emphasizing provisions that allow immediate expensing for business investments and extended incentives for factory construction.
“What we are going to see next year, that, if you think about the signature parts of the tax bill, I think that the powerful, the most powerful parts had the immediate expensing for American business, permanent for equipment, and then four or five year window for factories,” Bessent said.
He said those provisions have already triggered a major increase in capital expenditures and are expected to accelerate further as trade deals take effect.
“So we are seeing, already seeing, a CapEx boom. So 2025 was a CapEx boom. I think that is going to accelerate with all the trade deals we’ve done,” he said.
Bessent pointed to Boeing’s expansion in South Carolina as a concrete example of how the tax and trade policies are influencing corporate decisions.
“I was just about six weeks ago in my hometown of Charleston, South Carolina, Boeing, the largest employer there, is increasing their plant by 50% for the Dream liners, result of the trade deals, but it’s also part of the tax deal,” he said.
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According to Bessent, the increased investment by major employers is expected to translate into job growth and higher wages for American workers.
“So we’re going to continue seeing this capex boom that turns into employment boom on the other side for working Americans,” he said.
Bessent said the legislation also reflects firm commitments made by President Donald Trump to working Americans, commitments that were treated as nonnegotiable during negotiations on Capitol Hill.
“The President I led the administration’s team up on the hill in terms of what was non negotiable for non negotiable for the President, and a lot of traditional Republicans didn’t like his campaign promises to working Americans, and the President never yielded on this,” Bessent said.
He listed several tax provisions that were preserved despite internal opposition.
“So no tax on tips, no tax on overtime, no tax on Social Security, deductibility of auto loans for American made cards,” he said.
Bessent noted that the bill, passed on July 4, applies retroactively, providing immediate benefits to both workers and businesses.
“So the bill was done on July 4. It’s retroactive to the beginning of the year for working Americans, retroactive to January 20 for corporates,” he said.
Bessent said the retroactive nature of the law combined with unchanged withholding levels is likely to result in unusually large tax refunds for many households.
“So working Americans. I also had the honor of being the IRS commissioner, and I can see that we’re going to have a gigantic refund year in the first quarter, because no one changed their working Americans did not change their withholding,” he said.
He predicted that many families could see substantial refunds when they file.
“So I think households could see, depending on the number of workers, $1000-$2,000 refunds,” Bessent said.
He added that once workers adjust their withholding going forward, they should see higher paychecks as well.
“They will change their withholding schedule at the beginning of the year, and they will get an automatic increase the in real wages,” he said.
Bessent said the combination of increased business investment and direct tax relief for individuals represents a powerful economic shift.
“So I think that’s going to be a very I think that’s going to be a very powerful combo of corporate and individuals,” he said.
WATCH:
🔥 Sec. Scott Bessent Says 2026 Will Be a ‘Gigantic Refund Year’
“I also have the honor of being the IRS commissioner and I can see that we’re going to have a gigantic refund year in the first quarter because working Americans did not change their withholding.” pic.twitter.com/cFaB7PeaUB
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