Some flooring industry executives view President Trump’s 940-page “One Big Beautiful Bill Act” as being favorable to small business for providing tax cuts and incentivizing business investment. At the same time, some executives cautioned that it was still too early to gauge the full impact of the bill on the flooring trade but are holding out hope that the legislation would generate more disposable income and, thus, spur spending.
Among the provisions, the spending bill would: make permanent the tax breaks from Trump’s first term; expand provisions on expenses and itemizations; and allow companies to deduct the cost of new manufacturing plants. The National Federation of Independent Business (NFIB), an advocacy organization, said there was several wins for small business, including:
- Section 179 – increases small business expensing cap from $1.25 million to $2.5 million. This would allow small businesses to fully expense business equipment purchases in the first year.
- Makes the 2017 marginal rate cuts permanent. Without this provision, five out of seven marginal (individual) income tax rates would have risen at the end of the year, according to NFIB. Nine out of 10 small businesses are structured as pass-through businesses and pay regular income tax rates rather than the C-corporation rate.
- Increases and makes permanent the Small Business Estate Tax Exemption. The new exemption thresholds will be set at $15 million for individual filers and $30 million for joint filers.
Several flooring executives said they have not fully digested the elements in the spending bill and therefore hesitated to comment directly until they have greater clarity. Their hope is that the legislation would eventually generate more disposable income and thus spur consumer spending.
“Relying on what is reported in the news media or shared on social media as the basis for my business opinion is a little dangerous as folks sometimes focus only on partial information or take matters out of context,” said Scott Rozmus, president/CEO of flooring distributor FlorStar Sales, Romeoville, Ill. “That said, I feel history has shown that when the government reduces the scope and complexity of regulation and when tax policies encourage investment, entrepreneurs take more risk, which ultimately is good for our economy. More specifically, to the extent businesses invest and expand their operations domestically, there should be opportunities not only for greater innovation from among those firms participating within floor covering, but also more demand for certain types of commercial floor covering and related items from these growing businesses. Likewise, the certainty that tax rates should remain stable may encourage more middle– and upper–income consumers to pursue remodeling projects, which certainly would provide an indirect benefit to the rest of the channel.”
While the spending bill’s impact on business may not be immediate, some feel the long-term benefits bode well for an industry that has been stagnant in recent years. “I believe over time there will be a positive impact to consumer confidence, and we will begin to see a lift in activity as we go through the second half of 2025,” said T.M. Nuckols, president of The Dixie Group’s residential division. “If this bill delivers the kind of economic growth which has been touted, we should see improving flooring market conditions over the coming months and years. After the three years of residential flooring challenges the industry has seen, that will be a welcome change.”
Flooring dealers say the bill should inject some money into the economy, with the hope that it will trickle down to flooring purchases. “Our business has been good, but we can see a delay in the residential market where people are quoting but not purchasing right away,” said Bob Pireu, co-owner of Bob & Pete’s Floors in Canton, Ohio. “I hope this stimulates that sales time and rejuvenates some consumer confidence. There is so much white noise out there on what this bill will do, but ultimately, I think it’s good for manufacturers and small businesses.”
Bruce Odette, president of Denver-based Carpet Exchange, said there are several elements in the spending bill that he can get behind. “The extension of the tax cuts originally enacted during Trump’s 2017 term will continue to provide meaningful benefits to businesses like ours,” he said. “Additionally, while full details are still pending, the provisions eliminating taxes on tips and overtime pay could significantly increase consumers’ disposable income. More money in people’s pockets typically leads to greater discretionary spending, which bodes well for industries like ours. In short, more disposable income means more potential customers and more sales.”
Tariff threats loom
Days after the bill was signed into law, Trump amped up his trade war with several countries, threatening tariffs ofbetween 25% and 40% on imports from seven countries—including Japan, South Korea, Malaysia and South Africa—the first of what he said would be a series of higher duties as the administration continues negotiating trade deals ahead of a new Aug. 1 deadline.
For some industry executives, the uncertainty of the tariffs poses a more immediate concern than the promises of the bill. “Our primary thoughts at this time are [the administration] needs to resolve this tariff conversation to get consumers back in play as they have cocooned since the original tariff announcement back in early April,”
said Jeff Striegel, president of distributor Elias-Wilf, Owings Mills, Md.
As an importer, Couristan has been focused on the tariffs and how that may affect its business. “We just hope that higher tariffs, or uncertainty regarding the tariffs, will offset any benefits we can see with the [big, beautiful bill],” said Len Andolino, president. “Time will tell. Today is the time for a steady hand to navigate these choppy waters.”
