How the American Tax Code is Designed to Hurt Artists

Not exactly a sexy topic, but dangerous for the long-term creative output of our country.

1. Nearly all artists–freelance writers, authors who get paid for their books, artists paid for a gallery show or a painting–are independent contractors under tax law.

2. Where normal workers have to pay 6.5% of their income into Social Security, independent contractors must pay double (13%) because we are considered both “employer” and “employee.” (Triple sting when you add the rapidly declining possibility that people under 30 will actually even receive Social Security…)

3. Then come city, state and federal taxes, taxed at a rate with that 13% still in there of course.

4. There is also the problem that art that may’ve taken years to produce is, when purchased, considered one year’s income. So, for example, if a painting series sold for 60 grand took an artist 3 years to paint, s/he is actually making 20 grand a year (e.g. below the poverty line), but when paid out, is being taxed as if she is making 60 grand a year.

5. Then we must buy individual healthcare plans through the exchange at much higher rates than those who can get coverage through their companies. It’s hard to get assistance through Obamacare stipulations; in fact often we are charged at an even higher rate, because the exchange looks only at pre-taxed income.

6. PS–we have student debt, too.