The Case for Preempting SALT Cap Workarounds

11 Pages Posted: 8 Aug 2018 Last revised: 7 Oct 2018

See all articles by Hayes Holderness

Hayes Holderness

University of Richmond - School of Law

Date Written: July 18, 2018


A growing number of states are considering or enacting state laws designed to counteract the Tax Cuts and Jobs Act’s $10,000 cap on the federal state and local tax deduction. These state workarounds appear technically functional at first glance but run into a deeper problem on further examination: they may be preempted as frustrating the objectives of Congress. This essay explores the case for and against preemption of these workarounds. The states’ frontal attack on the state and local tax deduction cap may prove the key to their demise, even though the states are exercising basic state powers which the courts have been loath to preempt.

Keywords: State and Local Taxation, Taxation, Preemption, Conflict Preemption, Obstacle Preemption, Supremacy Clause, Federal Taxation, State and Local Tax Deduction, SALT Cap, Supremacy Clause

JEL Classification: K34

Suggested Citation

Holderness, Hayes, The Case for Preempting SALT Cap Workarounds (July 18, 2018). State Tax Notes, August 20, 2018. Available at SSRN:

Hayes Holderness (Contact Author)

University of Richmond - School of Law ( email )

28 Westhampton Way
Richmond, VA 23173
United States

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