Performing Artist Tax Parity Act of 2021
Bill: S.2872 | Sponsor: Sen. Warner, Mark R. (D-VA)
Policy area: Taxation

Summary:
Performing Artist Tax Parity Act of 2021
This bill modifies the tax deduction for the expenses of performing artists (including commissions paid to managers or agents) to provide for a phaseout of such deduction for taxpayers whose adjusted gross income exceeds $100,000 ($200,000 for joint return filers). The $100,000 phaseout threshold is adjusted for inflation annually for taxable years beginning after 2021.

To amend the Internal Revenue Code of 1986 to increase the adjusted 
  gross income limitation for above-the-line deduction of expenses of 
          performing artist employees, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Performing Artist Tax Parity Act of 
2021''.

SEC. 2. ABOVE-THE-LINE DEDUCTION OF EXPENSES OF PERFORMING ARTISTS.

    (a) In General.--Section 62(a)(2)(B) of the Internal Revenue Code 
of 1986 is amended--
            (1) by striking ``performing artists.--The deductions'' and 
        inserting the following: ``performing artists.--
                            ``(i) In general.--The deductions''; and
            (2) by adding at the end the following new clauses:
                            ``(ii) Phaseout.--The amount of expenses 
                        taken into account under clause (i) shall be 
                        reduced (but not below zero) by 10 percentage 
                        points for each $2,000 ($4,000 in the case of a 
                        joint return), or fraction thereof, by which 
                        the taxpayer's gross income for the taxable 
                        year exceeds $100,000 (200 percent of such 
                        amount in the case of a joint return).
                            ``(iii) Cost-of-living adjustment.--In the 
                        case of any taxable year beginning in a 
                        calendar year after 2021, the $100,000 amount 
                        under clause (ii) shall be increased by an 
                        amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins, determined by 
                                substituting `calendar year 2020' for 
                                `calendar year 2016' in subparagraph 
                                (A)(ii) thereof.
                        If any amount after adjustment under the 
                        preceding sentence is not a multiple of $1,000, 
                        such amount shall be rounded to the nearest 
                        multiple of $1,000.''.
    (b) Clarification Regarding Commission Paid to Performing Artist's 
Manager or Agent.--Section 62(a)(2)(B)(i) of such Code, as amended by 
subsection (a), is amended by inserting before the period at the end 
the following: ``, including any commission paid to the performing 
artist's manager or agent''.
    (c) Increase in Threshold for Determining Nominal Employers.--
Section 62(b)(2) of such Code is amended--
            (1) by striking ``An individual'' and inserting the 
        following:
                    ``(A) In general.--An individual'';
            (2) by striking ``$200'' and inserting ``$500''; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Cost-of-living adjustment.--In the case of 
                any taxable year beginning in a calendar year after 
                2021, the $500 amount under subparagraph (A) shall be 
                increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2020' 
                        for `calendar year 2016' in subparagraph 
                        (A)(ii) thereof.
                If any amount after adjustment under the preceding 
                sentence is not a multiple of $50, such amount shall be 
                rounded to the nearest multiple of $50.''.
    (d) Conforming Amendments.--
            (1) Section 62(a)(2)(B)(i) of such Code, as amended by the 
        preceding provisions of this Act, is amended by striking ``by 
        him'' and inserting ``by the performing artist''.
            (2) Section 62(b)(1) of such Code is amended by inserting 
        ``and'' at the end of subparagraph (A), by striking ``, and'' 
        at the end of subparagraph (B) and inserting a period, and by 
        striking subparagraph (C).
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2020.
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