New York — Actors’ Equity Association, the national union representing more than 51,000 professional actors and stage managers working in live theatre, applauds the reintroduction of the bipartisan Performing Artist Tax Parity Act (PATPA), introduced by Sen. Mark Warner (D-VA) and Sen. Thom Tillis (R-NC). This bill corrects an unintended consequence of the 2017 Tax Cut and Jobs Act which led to tax increases for many performing artists who could no longer deduct the cost of their ordinary and necessary unreimbursed business expenses.
Working theatre artists may typically spend 20 to 30 percent of their income on necessary expenses – such as to pay for travel to auditions or a talent agent – to stay in the business and to procure employment.
“From stage managers to actors, musicians and stagehands, the overwhelming majority of arts professionals are hardworking Americans who have been paying hundreds and sometimes thousands of dollars more in taxes because of an inadvertent oversight when Congress last passed tax reform,” said Brooke Shields, president of Actors’ Equity Association. “Senators Warner and Tillis have introduced a simple bipartisan fix that will level the playing field for arts workers, many of whom spend thousands of dollars out of pocket on business expenses. We’re grateful for the leadership of Senators Warner and Tillis for reintroducing this critical legislation that has the support of workers and employers in the arts community.”
PATPA has been introduced to Congress three times in the last four years. The legislation has been endorsed by a broad coalition of employers and unions, including The Broadway League, the League of Resident Theatres (LORT), the National Independent Venue Association (NIVA), Americans or the Arts, Recording Academy, American Federation of Musicians, SAG-AFTRA, IATSE and Department for Professional Employees, AFL-CIO.
While the 2019 tax reform bill did not harm high-income artists, many others in the industry have reported massive tax increases because they lost the ability to deduct their business expenses. “People sit with me and just break into tears because they didn’t know what to do,” Sandra Karas, a tax attorney and secretary-treasurer of Actors’ Equity Association, told the Los Angeles Times, which covered the devastating tax increases that hit performing artists.
The bill would update the bipartisan Qualified Performing Artist (QPA) deduction, which was originally signed into law by President Ronald Reagan. The QPA allows an above-the-line tax deduction for qualified performing artists but has been limited since it was enacted to a total adjusted gross income of the taxpayer to $16,000. PATPA would update the deduction to $100,000 for single filers and $200,000 for married artists filing jointly.
ACTORS' EQUITY ASSOCIATION, founded in 1913, is the U.S. labor union that represents more than 51,000 professional actors and stage managers. Equity endeavors to advance the careers of its members by negotiating wages, improving working conditions and providing a wide range of benefits (health and pension included). Member: AFL-CIO, FIA. www.actorsequity.org #EquityWorks
July 23, 2024
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