SALT Parity - The S Corporation Association

The C SALT Loophole

Last month, the Bipartisan Policy Center put forward some suggestions on how to address the pending sunset of the State and Local Tax (SALT) cap, including rolling back the pass-through “SALT Parity” laws we helped enact in 36 states. A couple of thoughts.

Pass-Through Parity

First, the SALT cap played a big role in our efforts to ensure pass-through businesses were treated fairly under the TCJA. The SALT cap raises huge amounts of revenue ($100 billion-plus per year) and about 20-30 percent of that is paid on pass-through income. For comparison, that’s about half the total revenue impact of the …

(Read More)

admin2025-01-16T19:22:08+00:00January 16, 2025|

The Bull Case for a Bipartisan Fiscal Cliff Deal

For years we’ve been sounding the alarm over the 2025 “fiscal cliff,” a watershed moment that will force lawmakers to address a litany of expiring tax provisions or risk a massive tax hike on families and Main Street businesses. Below is a look at what’s at stake for Main Street businesses and our bull case for Congress taking action next year.

Sunsets and Families

One TCJA myth is that it benefited big corporates and billionaires only. That’s simply not true. Much of the tax relief targeted at corporations and wealthy individuals was paired with significant revenue raisers, while the tax relief targeting …

(Read More)

admin2024-05-20T13:30:13+00:00May 20, 2024|

Our SALT Parity Campaign Back in the News

Richard Rubin is out with a new piece in the Wall Street Journal that highlights just how successful our SALT Parity efforts have been. The article centers on an upcoming Tax Policy Center analysis which finds these reforms save businesses $15-20 billion each year, double what the Journal estimated last year.

As longtime readers know, the 2017 Tax Cuts and Jobs Act (TCJA) imposed a $10,000 cap on the amount of state and local tax (SALT) deductions taxpayers can claim on their federal return. While C corporations were exempted from the cap, most pass-through businesses owners were subjected to …

(Read More)

admin2023-08-29T14:59:48+00:00August 29, 2023|

Reviewing the SALT Parity Landscape

Thanks to the efforts of S-Corp and our allies over the past five years, 31 states have adopted our SALT Parity reforms to date, with another half-dozen actively considering them. Those new laws have enabled pass-through businesses to save north of $10 billion each year, a figure that will only increase as more states and businesses embrace the approach.

As background, the 2017 Tax Cuts and Jobs Act subjected deductions on state and local taxes (SALT) on pass-through business income to …

(Read More)

admin2023-10-26T18:55:22+00:00March 23, 2023|

Your State Could Be Costing You Millions

To mark the five-year anniversary of the Tax Cuts and Jobs Act, Tax Notes recently released a podcast reflecting on the 2017 bill, with a focus on how states have responded to its $10,000 cap on state and local tax (SALT) deductions. It’s a great reminder of how much the S Corporation Association has helped accomplish in that time, the billions of dollars being saved by businesses each year, and the confounding fact that a dozen states are still missing out on these benefits.

For those new to the issue, the SALT cap put S corporations and partnerships at a …

(Read More)

admin2022-12-21T18:07:43+00:00December 20, 2022|