Actors’ Equity Association applauds Senate introduction of fiscal parity law for bipartisan performing artists
Association for stakeholder equity applauded the Senate’s introduction of the Performers Tax Parity Act (PATPA), introduced by Senators Mark Warner (D-VA) and Bill Hagerty (R-TN). This bill would correct an unintended consequence of the Tax Cut and Jobs Act of 2017, which resulted in tax increases for many performing artists who could no longer deduct the cost of their unreimbursed regular and necessary business expenses.
While tax reform has not hurt high-income artists, many other players in the industry have reported massive tax increases because they lost the ability to deduct their professional expenses. Professional actors, stage managers, and musicians, for example, typically spend 20 to 30 percent of their income on expenses necessary – like paying for travel to auditions or a performing arts agent – to stay with the business and procure a use. performing artists while the industry is in a historic crisis, ”said Kate shindle, president of Association for stakeholder equity. “The overwhelming majority of Equity managers and actors are working class people who work hard to make ends meet, and unlike other workers, they often have to spend 30% of their income on business expenses. Our producers can deduct their professional expenses, and we should be able to do that too. The Performing Artists Tax Parity Act will put more money in the pockets of working artists when they need it most then that we are working to take over the arts sector.
The bill would update the bipartite Deduction for Qualified Performers (QPA), which was originally enacted by the President Ronald reagan. The LPQ allows an above-the-line tax deduction for qualified performers, but has been limited since it was enacted to an adjusted total gross taxpayer income of $ 16,000. PAPPA would update the deduction to $ 100,000 for single filers and $ 200,000 for married artists filing jointly. The in-house version of the Performing Tax Parity Act was introduced by Representative Judy Chu (D-CA) and Representative Vern Buchanan (R-FL) in July. With the introduction of the Senate, there is now a bipartisan bill in both houses of Congress.
“Despite their influence and disproportionate contributions to local communities and economies, Americans’ struggle in the arts has been recognized for years,” Representatives Buchanan and Chu wrote in The hill when the bill was first introduced. “Most of the actors and directors who belong to Association for stakeholder equity and SAG-AFTRA members who work in television and film are hard-working middle-class taxpayers – often struggling to get by. They’ve slipped through the cracks of an imperfect system. “To build support for PATPA, Equity has partnered with arts and entertainment unions, working in partnership with each other to meet with congressional offices. Since PAPPA’s inception in June 2019, unions have held dozens of meetings with Congress staff. Equity and SAG-AFTRA also submitted a testimony to the House Ways and Means Committee regarding the need for tax fairness for actors and managers.