Dear Senator (or Assmblymember) (insert the name),
I am a registered voter and a professional musician and member of Local 802 AFM. I am writing to you with regard to Governor Paterson's proposal to re-implement the sales tax on live musical and theatrical entertainment. This action will cause great suffering to my colleagues performing on Broadway. This tax could have a devastating effect on all the Broadway unions, whose contributions to this industry make Broadway one of New York's most important sources of economic growth over the last few decades. The long-term economic impact would be far worse than any perceived short-term gain could achieve.
To understand the harm this tax will cause the Broadway community, some background is in order. After a ten-day strike in the theatre industry in 1960, New York City rescinded its sales tax on Broadway Theatre tickets as part of the settlement agreement. A subsequent arbitration award in 1963 provided that this former tax revenue would be utilized as the major funding source to provide pension and health benefits for more than 4,000 theatre employees - from musicians, actors and stagehands, to ushers, box office staff, hair make-up and wardrobe and more. This has been stable funding for benefits for the last 45 years.
Elimination of the tax resolved very difficult labor and benefit issues and helped make possible the long-term revival of the Theatre industry in New York City. Since the 1960's there have been six major theatres built or refurbished in the Broadway Theatre District. A decaying industry with empty theaters in the increasingly seedy and sometimes dangerous center of Manhattan has been resuscitated. It is now a healthy industry attracting millions from around the globe to New York each year. The live theatre and entertainment industry in New York City is now one of the most important economic engines of our City and State.
The likely and most ominous consequence of this tax would occur at the negotiating table, as owners would attempt to stabilize their businesses by demanding cuts in benefits to offset the cost of the theater tax. This would immediately threaten the benefits of thousands of theatre employees, many of whom would lose access to health benefits. The burden of the health care cost for many of these members and their families, due to the precarious nature of working in the entertainment industry, would very likely fall on the State.
The unions and the members they represent would have no choice but to fight to re-instate these critically important benefits. As labor agreements expire over the next three years, there would very likely be major disruptions in the industry. Even a brief disruption would cost the city and state significant tax receipts from missed payrolls and sales taxes in the travel, hotel and restaurant industries. If Broadway goes dark, it will not be because the parties at the bargaining table desire it. It will be because the legislature destabilized the industry.
I urge you and your colleagues in the legislature to reject this ticket tax proposal. A reasonable solution to the budget gap is a progressive tax system. The wealthy have not paid their fair share since 1990. The great majority of my colleagues in Local 802 AFM live on middle class incomes and end up paying a far larger portion of our income in sales, real estate and income taxes than the wealthy. Any serious effort to close budget gaps has to start with all New Yorkers paying their fair share of taxes.
Thank you for your time and attention.
Sincerely Yours,
