Cut creatives some slack on taxes, says MP

The NDP’s Peggy Nash is calling on Ottawa to change its tax laws for cultural professionals who are at a ‘considerable tax disadvantage’ due to their fluctuating incomes.

The MP held a press conference Friday in her Toronto constituency of Parkdale-High Park to draw attention to the ‘tax fairness for artists’ private members bill she introduced in May.

Nash is proposing that Ottawa deem artists as independent contractors for income tax purposes; permit income averaging for artists’ income; and implement a tax credit for parents who enroll their children in arts programs.

‘The biggest subsidy to the arts comes from the artists themselves,’ Nash told Playback Daily, noting the average income of artists in Canada is less than $25,000 a year. ‘Rather than taxing a director who made $50,000 this year as if they made that every year, we would average that income over a five-year period, so their taxation per year would be significantly less.’

Her move has support from the Directors Guild of Canada, ACTRA, the Writers’ Union of Canada and members of the Ontario Federation of Labour.

‘There are lots of jurisdictions where artists are recognized in tax legislation. It’s not difficult to figure out how to do it… what’s missing is the will,’ said Karl Pruner, president of ACTRA Toronto.

The DGC’s Arden Ryshpan, executive in charge of directors’ affairs, also talked up the impact of the rising loonie — which on Friday reached $0.94 against the U.S. dollar — though she expressed confidence it wouldn’t hurt summer shoots, which, she noted, have been booked well in advance.

‘We still have a fair amount of American productions coming up because of terrific crews, facilities and actors. It’s advantageous for them creatively to come across the border, even if it’s not as cheap as it used to be,’ she said.

Nash, who introduced the motion in the House of Commons in early May, is hoping the government will bring it in its budget next year.

‘No one is predicting an early election anymore, so I think it’s good for people who actually want to get something done from the federal government,’ she said, adding her next step is to drum up support for the motion from the other parties.