S.1121 - Performing Artist Tax Parity Act of 2025 (119th Congress)
Summary
The Performing Artist Tax Parity Act of 2025 (S.1121) aims to amend the Internal Revenue Code of 1986 to increase the adjusted gross income (AGI) limitation for above-the-line deductions for performing artists' expenses. The bill introduces a phaseout of these deductions for higher-income artists and includes a cost-of-living adjustment to the income thresholds. It also clarifies that commissions paid to managers or agents are deductible and increases the threshold for determining nominal employers.
Expected Effects
The bill will likely result in a tax reduction for many performing artists, particularly those with lower to middle incomes. The cost-of-living adjustments will help maintain the value of the deduction over time. However, higher-income artists may see a reduced benefit due to the phaseout.
Potential Benefits
- Increased Tax Savings: Performing artists with lower to middle incomes will likely see increased tax savings due to the higher AGI limitation for above-the-line deductions.
- Inclusion of Commissions: Clarifying that commissions paid to managers/agents are deductible provides additional tax relief.
- Cost-of-Living Adjustments: The cost-of-living adjustments will help preserve the value of the deduction and income thresholds over time, preventing inflation from eroding the benefits.
- Simplified Tax Filing: Above-the-line deductions are simpler to claim than itemized deductions, potentially reducing the complexity of tax filing for artists.
Potential Disadvantages
- Phaseout for Higher Incomes: The phaseout of deductions for higher-income artists may reduce or eliminate the benefit for some.
- Complexity: The phaseout calculation and cost-of-living adjustments add some complexity to the tax code.
- Limited Scope: The bill only benefits performing artists, potentially creating a sense of unfairness among other professions with work-related expenses.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution (Preamble), as it aims to support a specific group of workers (performing artists). Article I, Section 8 grants Congress the power to lay and collect taxes, and this bill represents an adjustment to the tax code within that authority. There are no apparent conflicts with specific constitutional amendments or limitations on congressional power.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).