It’s been seven years since the first state enacted our SALT Parity legislation restoring the SALT deduction for pass-through businesses.

Since that time, thirty-five other states have followed suit, the IRS issued Notice 2020-75 in support of the state laws, and Congress considered but rejected several efforts to repeal or otherwise limit the deduction for pass-throughs. (As always, C corporations continue to deduct their SALT without limitation or debate.)

After all that, you’d think the tax community would accept that our SALT Parity laws are in good standing.  You’d be wrong.

The latest example of hand-wringing comes from a recent …

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One BIG Main Street win in the One Big Beautiful Bill (OB3) was what didn’t happen: Congress rejected ill-considered proposals in both the House and Senate drafts to limit pass-through entity (PTET) deductions for state and local taxes (SALT).

That was huge for many reasons, but primarily because the C corporation down the street continues to fully deduct their SALT. In what rational world is Home Depot allowed to deduct its SALT, but your local hardware store is not?

In place of limiting PTET deduction, Congress instead voted to temporarily raise the individual SALT cap from $10,000 to $40,000. What …

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To whoever signed off on yesterday’s Wall Street Journal editorial attacking the ability of Main Street businesses to deduct their SALT payments – just like C corporations do – S-Corp has a bridge to sell you. Seriously, you got played.

The piece starts off wrong and gets worse from there. Here’s what it says:

Senate Republicans appear to be acquiescing to demands by House Republicans from high-tax states to raise the $10,000 limit on the state-and-local tax deduction to $40,000. In return for this gift to spendthrift progressive states, they should at least close a giant loophole in the cap.

The …

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