Parting ways. Celebrities such as Cameron Diaz and Rick Moranis rose to stardom in Hollywood — only to leave their acting careers in the past.
07.12.2022 - 02:25 / deadline.com
Leaders of Hollywood’s unions and guilds are calling on Congress to pass the Performing Artist Tax Parity Act (PATPA) before Republicans take control of the House of Representatives in January. The legislation would restore tax breaks for work-related expenses by updating the Qualified Performing Artist (QPA) deduction and modernizing a provision that has been on the books since it was signed into law in the 1980s by President Ronald Reagan. The provision would allow middle-class entertainment workers to again deduct common business expenses.
Currently, the adjusted gross income threshold for the QPA deduction is $16,000, which has been unchanged since QPA’s inception in 1986. PATPA would raise the threshold of the QPA deduction to $100,000 for single taxpayers and $200,000 for joint filers to help ensure middle-class entertainment workers qualify for the deduction.
In a letter sent today to the leaders of the House Ways and Means Committee and the Senate Committee on Finance, the union leaders said that “The ability to claim the QPA deduction would have a meaningful impact on the lives of middle-class entertainment workers and their families. According to information from the Volunteer Income Tax Assistance program at the Actors’ Equity office in New York, a Pennsylvania sound engineer would realize a tax savings of over $4,500 under PATPA. A Nevada actor would pay $1,500 less in taxes. A New York musician would save $3,000. Instead of paying unnecessarily burdensome tax bills, these middle-class professionals will be able to put their money toward seeking continued work, making the next month’s rent, putting food on the table, and contributing to their local economies.”
Signing the letter were:
SAG-AFTRA president
Parting ways. Celebrities such as Cameron Diaz and Rick Moranis rose to stardom in Hollywood — only to leave their acting careers in the past.
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