Madam, – I read with distress the proposal to abolish tax relief for artists. This concession has added greatly to our society and has allowed many of our young emerging artists to stay in Ireland and make the visual arts their livelihood.
I have dealt with literally hundreds of artists for almost 21 years in organising the visual arts at Boyle Arts Festival. Except for the very successful few, most are finding life difficult. Artists face a 40-50 per cent commission charge from galleries (who provide an important and valuable service to artists), then have to meet the costs for framing, canvas, paint and in most cases a studio. The position is worse for sculptors who have very high foundry costs. On a sale price of €1,000 an artist would be lucky to have a profit of €300 on a painting.
Most artists produce few works in a year and out of their net income they have to pay PRSI, further reducing their income.
Of course there are those in the category of artist who make enormous sums, but these are the exception. It may also be argued that the exemption threshold of €250,000 is over-generous in these difficult times, and I would see no reason not to address this threshold.
However, I know from first-hand experience that most artists, painters, musicians and sculptors, struggle to continue in their profession and taking their meagre incomes would drive many of them out of their profession, thereby greatly diminishing the cultural life of Ireland with little tax benefit to the exchequer. – Yours, etc.
FERGUS AHERN,
Chairman,
Boyle Arts Festival,
Boyle,
Co Roscommon.
Madam, – It is regrettable that an article in The Irish Times (September 5th) placed the artists’ tax exemption scheme under a heading “Call to abolish tax shelters for the wealthy”.
The exemption is not a “rich man’s relief”.
The greatest number of the beneficiaries of the exemption struggle for financial viability on a year-on-year basis.
This is true of relatively unknown beneficiaries, as well as certain of Ireland’s most internationally renowned and critically acclaimed artists.
Arts Council research has shown that over half the beneficiaries of the scheme have average earnings of less than half the minimum wage.
Of the two per cent who are considered high earners, most of whom are in popular music and writing, only one-third of their income qualifies for the relief.
It is important for Ireland to have artists of world renown resident in Ireland.
Apart from the global perception this gives to Ireland, it has helped put in place world-class local infrastructures in artistic management and technical expertise.
For up-and-coming artists, this is of considerable assistance. Without the high earners, who support the infrastructure in a major way, this professional layer will be lost to Ireland.
The Arts Council, based on figures from a few years ago, has worked out that if the exemption is scrapped and artists leave Ireland, the Exchequer could be forgoing some €36 million in tax revenue. – Yours, etc,