Actors' Equity Association applauded the Senate introduction of the bipartisan Performing Artist 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 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.
While tax reform 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.
Professional actors, stage managers and musicians, for example, 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.
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