This change dramatically alters the cost-benefit analysis of the SALT workarounds. Scenario B: $40,000 SALT cap: With a $40,000 cap, the same taxpayer could deduct their entire $18,750 SALT burden without the need for entity-level taxation. Ethical considerations of SALT workaroundsThe SALT cap was originally enacted because the SALT deduction disproportionately benefits upper-income households who itemize deductions and live in high-tax states. SALT workarounds were enacted to combat congressional intent, occupying an ambiguous ethical space. The $10,000 SALT limitation prompted states to devise creative workarounds that helped some but not all taxpayers.