Connecticut Finds a SALT Workaround That Would Actually Work

Stephen Kranz said of Connecticut’s new proposed entity-level passthrough workaround to the state and local tax deduction cap, “Why not have more of them if done properly?” Mr. Kranz added, “States that are interested in imposing an entity-level tax need to carefully structure the regime, making sure to give credit to similar entity-level taxes imposed by other states, to avoid a constitutional challenge. Connecticut has appropriately provided for such a credit.”