Tax Fairness for Entertainment Workers: The Case for PATPA

WASHINGTON, D.C.— The International Alliance of Theatrical Stage Employees (IATSE) commends Congressman Vern Buchanan and Congresswoman Judy Chu for reintroducing the Performing Artist Tax Parity Act (PATPA), a vital step toward delivering long-overdue tax fairness for working-class professionals in the arts, media, and entertainment. Originally signed into law by President Reagan in 1986, the Qualified Performing Artist (QPA) tax deduction allowed entertainment professionals to deduct work-related expenses. However, the income cap for eligibility has not been updated in nearly 40 years, leaving those earning more than $16,000 per year unable to benefit. PATPA would modernize this deduction by raising the income threshold to $100,000 for individuals and $200,000 for married joint filers, while ensuring future adjustments for inflation.

IATSE International President Matthew D. Loeb said, “I commend Reps. Buchanan and Chu for reintroducing the Performing Artist Tax Parity Act (PATPA) at the start of the 119th Congress. They have been persistent in their determination to pass this legislation. It’s time to lower the cost of living for entertainment workers by including PATPA in tax legislation expected later this year, correcting an oversight that has taken money out of the pockets of middle-class IATSE members since 2017. In that time, IATSE members have endured a global pandemic, a months-long industry work stoppage, and contraction in film and television production in the United States – each further compounding the financial hardship felt by so many. We look forward to locking arms with our Congressional champions to achieve this goal.”

Arts, media, and entertainment aren't just part of our culture, they are economic drivers. In regions all over the country, including Southwest Florida as highlighted by Rep. Buchanan, the creative economy generates hundreds of millions of dollars annually. While “performing artists” sounds like just the talent audiences see, it also includes behind the scenes workers. For example, currently cinematographers, wardrobe attendants, and make-up artists must now shoulder the full cost of the camera equipment, costume alteration tools, and cosmetic supplies necessary to do their jobs. Every year, creative professionals can spend 20% to 30% of their income on necessary expenses to secure and maintain employment, but unfairly cannot deduct those expenses like businesses can.

IATSE calls on Congress to advance this bipartisan legislation and urges lawmakers to include PATPA in upcoming tax legislation. Entertainment workers deserve a tax system that reflects their contributions and supports their livelihoods.

In conclusion, the Performing Artist Tax Parity Act (PATPA) is a crucial piece of legislation that would provide much-needed tax relief for middle-class entertainment workers. By raising the income threshold for the Qualified Performing Artist tax deduction, PATPA would help to lower the cost of living for these professionals, enabling them to continue contributing to the creative economy and supporting their livelihoods. Congress should prioritize the passage of this bipartisan legislation and include it in upcoming tax legislation.