Actors’ Equity Praises Re-Introduction of Bipartisan Performing Artist Tax Parity Act in Congress

Actors’ Equity Association has applauded the reintroduction of the bipartisan Performing Artist Tax Parity Act (PATPA), introduced by Rep. Judy Chu (D-CA) and Rep. Vern Buchanan (R-FL). This bill corrects an unintended consequence of prior tax reform efforts, 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.
 
“We have entered yet another tax season with a policy that unfairly penalizes arts professionals,” said Brooke Shields, president of Actors’ Equity Association. “We thank Representatives Chu and Buchanan for once again introducing a bipartisan bill that will mean that actors, stage managers and their colleagues no longer have to pay hundreds, and sometimes thousands of dollars more in taxes simply due to baseline costs of working in this industry. This was an oversight in tax reform that can be remedied with a simple fix. That needs to happen this year.”
 
“Creative professionals are found in every state and congressional district in the country and most are middle and working class, not A-list stars. In this demanding industry, working class entertainers shouldn't have to choose between meeting their basic needs and paying for essential business expenses like transportation, a talent agent, or equipment. Congressman Buchanan and I are introducing the Performing Arts Tax Parity Act so that entertainment professionals get the tax relief they deserve and can continue inspiring Americans around the country,” said Representative Judy Chu.
 
“An overwhelming majority of performing artists are lower-income and middle-class Americans struggling to make ends meet,” said Representative Vern Buchanan. “Performing artists are an asset to our community, and they should not have to choose between paying for work-related expenses and their basic needs. I’m proud to once again join Congresswoman Chu to lead this bipartisan effort to update this 40-year-old law to deliver needed tax relief for performing artists in Southwest Florida and across the country.”
 
PATPA has been introduced to Congress four previous times since 2019. 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.