December 8, 2021 | Understanding SALT Cap Workarounds
In the Tax Cuts and Jobs Act, the individual taxpayer deductions for state and local taxes were limited to $10,000 a year. That included owners of passthrough entities, such as partnerships, S corporations, and sole proprietorships. In the years since, 23 states have proposed or enacted SALT cap workaround legislation that enables taxpayers to circumvent the federal limitation. In Notice 2020-75, the IRS said it will not challenge certain workarounds, and the Build Back Better Act in Congress could raise or eliminate the SALT deduction cap. So why are these laws necessary? Who benefits from them? Are workarounds good policy? How will states respond to the workaround laws of other states?
ABOUT THE SPEAKERS
President and CEO, Tax Analysts
As the moderator for our Taxing Issues webinars, Cara objectively analyzes issues and asks probing questions that challenge panelists to explain and defend their positions.
When she’s not moderating Taxing Issues webinars, Cara provides strategic oversight for Tax Analysts. She has led efforts to improve the Tax Notes suite of products and to aggressively pursue transparency in the administration of tax systems. Previously, Cara managed the editorial department, including the flagship daily news publications and weekly magazines. She has written for a broad range of tax policy publications, including Tax Notes State, The Tax Adviser, The Hedge Fund Law Report, and The Hill. She regularly speaks at tax conferences and other events, discussing a variety of technical tax issues as well as the need for transparency in tax administration.
Cara has a BA in political science and a BA in international studies from the University of Evansville and a JD from the George Washington University Law School.
Steven N.J. Wlodychak, Esq.
Retired Principal, former National State and Local Tax Policy Leader for Americas Tax Policy and currently a contractor to Ernst & Young LLP
Steve Wlodychak is a state and local tax columnist for Tax Analysts and a retired principal and the former State and Local Tax Policy Leader for EY’s Americas Tax Policy in Washington, DC. In addition to writing for Tax Analysts, Steve is also continuing to serve EY’s clients as a part-time contractor on transaction tax and tax policy matters. Previously, Steve worked in EY’s Los Angeles and New York offices, was a state and local tax attorney for an international insurance company and an associate attorney with a major regional law firm. In addition, he worked in state government in New Jersey, including for the governor of the state. A frequent speaker and writer on state and local tax developments, EY awarded Steve its first ever lifetime achievement award as tax educator of the year in 2017. He also is a guest lecturer on state and local tax matters for the LL.M. in taxation program at the Georgetown University School of Law.
Steve holds degrees from Georgetown University’s School of Foreign Service, Seton Hall University’s School of Law and a master’s degree in tax law from New York University’s School of Law.
Alysse McLoughlin is a partner in the law firm of Jones Walker working in the Tax Practice Group on the State & Local Tax (SALT) Team out of the firm’s New York office.
Previously, Alysse was a partner in the firm McDermott Will & Emery LLP focusing on state and local tax matters.
Alysse is a leader in publishing and speaking on the impact of US tax reform on the states, including the impact of the international tax reform provisions.
Ms. McLoughlin was the head of state tax at Barclays, where she was responsible for all state taxes, including income, franchise, sales and use, and excise tax issues. Her responsibilities included establishment of state tax return filing positions and reserves, participation in the financial statement process, and the handling of all state tax audits. She has also held positions as state tax counsel at Lehman Brothers and attorney in the chief counsel division of the Internal Revenue Service.
Ms. McLoughlin received her LL.M. from New York University School of Law and her J.D. from Fordham University School of Law. She earned her B.A. from the State University of New York at Binghamton. Alysse is admitted to practice in New York and New Jersey.
Brian Reardon is the President of the S Corporation Association and the Principal at Reardon Consulting, LLC. He has over twenty-five years of experience working at the highest levels of public policy within the Congress, the Executive Branch, and the private sector.
Prior to his current roles, Brian worked at the White House as a Special Assistant to President George W. Bush at the National Economic Council. While at the White House, Brian was responsible for helping to develop and implement some of the President’s most significant legislative accomplishments, including the 2003 Jobs and Growth Tax Relief Act and the Medicare Modernization Act.
Mr. Reardon was Staff Director and Chief Economist for the Senate Republican Policy Committee. Mr. Reardon was also the tax lobbyist with the National Federation of Independent Business (NFIB) and a budget aide to Senator Spencer Abraham (R-MI). His first job in DC was working for Senator Bill Armstrong from his home state of Colorado. Brian has a BS from Hillsdale College and a Master’s Degree in Economics from George Mason University.