Last night, the House passed a budget that did not include the Performing Artists Tax Parity Act (PATPA), a bill intended to address tax issues faced by performing artists. This omission has drawn criticism from the Actors’ Equity Association, representing 51,000 actors and stage managers. The bill aimed to correct prior tax reforms that inadvertently increased taxes for many artists who could no longer deduct necessary business expenses.
Brooke Shields, president of Actors’ Equity Association, expressed disappointment: “At a time when inflation is surging, the Performing Artist Tax Parity Act is a bipartisan bill that would help put money back into the pockets of thousands of arts workers, from musicians to actors and stage managers to the crew who bring live theatre and film and television shows to life,” she said. Shields emphasized the importance of PATPA as a priority for the union and thanked Congressman Buchanan and Congresswoman Chu for their support.
The PATPA has been introduced multiple times in Congress, most recently by Rep. Judy Chu (D-CA) and Vern Buchanan (R-FL). It has received endorsements from various organizations such as The Broadway League, National Independent Venue Association (NIVA), Recording Academy, SAG-AFTRA, IATSE, among others.
Many performing artists have faced significant tax increases due to changes in tax law that removed their ability to deduct business expenses. Sandra Karas, a tax attorney with Actors’ Equity Association, noted how these changes have caused distress among artists: “People sit with me and just break into tears because they didn’t know what to do,” she told the LA Times.
The proposed legislation seeks to update the Qualified Performing Artist deduction originally enacted under President Ronald Reagan. Currently limited to those with an adjusted gross income of $16,000 or less, PATPA would raise this limit to $100,000 for single filers and $200,000 for married couples filing jointly.
Actors’ Equity Association was founded in 1913 and is part of AFL-CIO. It represents professional actors and stage managers across the U.S., focusing on improving working conditions and negotiating wages.
