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Press Release from CARFAC National Office
Comments on the Federal Budget
February 2, 2009
Canadian artists worry they will get left behind in the new Federal Budget
OTTAWA - Thursday, January 29, 2009 - The Canadian Artists' Representation (CARFAC) is
pleased that the federal government will invest in new cultural programs, but is concerned
that artists themselves, the backbone of the creative economy, will get left behind.
"Investing in galleries and festivals is a smart way to stimulate the creative economy and inject money into a sector that represents 3.8 % of Canada's GDP," said Gerald Beaulieu, president of CARFAC National. "But if artists are left out, there won't be anything to show in those galleries and festivals."
Despite encouraging investment in the arts, the federal budget does little to help individual artists, half of whom earned less than $10,000 a year, according to 2004 statistics. Artists create wealth for communities simply by living and working in a neighbourhood, but virtually none of these benefits come back to artists themselves.
Government investment in the arts is
key for sparking urban renewal, and other spin off benefits generated by artists who can
return 200% or more on investment in arts funding. If nothing is done, these artists could be
forced to change careers, leaving many communities without an important economic driver.
An opportunity to invest in Canada's artists
CARFAC, along with many other arts organizations, made several suggestions to stimulate the
creative economy. The following recommendations, made by CARFAC to the Finance
Committee last summer, would help government maximize return on their investment in
Canadian artists:
Tax exemption
A tax exemption on copyright royalties would encourage creative production and
innovation which, in turn, feeds into local economies. Artists in Quebec and Ireland already
benefit from tax exemptions of up to $15,000 and €250,000 respectively. The Irish Arts
Council's 2005 report Testimonials on the Artists' Tax Exemption Scheme describes that, for
artists, the Scheme "represents the difference between taking on a second job and being
able to concentrate entirely on their art form and on creating output of an exceptionally high
standard."
Grants and awards
Similar to tax exemptions on copyright income, some artists who have demonstrated a high
level of excellence are supplemented by grants that allow them opportunity to produce
work. These grants and awards are currently subject to tax deductions at both the federal
and provincial level. In most cases, the amounts awarded are already minimal, and any
deduction makes a big difference. If grants and awards were not subject to tax deductions,
it is money that would otherwise be invested back into the artist's work.
Income averaging
Artists' income levels fluctuate over months and even years, making it difficult to predict what
their yearly income may be in any given year. It is hard to know how many exhibitions artists
may have, how many artworks may sell in a year, or whether a commission or teaching
position will open up. The traditional system of annual tax assessment is therefore
inappropriate for artists for this very reason. Income averaging allows artists to average their
income revenues out over a block of time, as has been implemented in Quebec.
Social security net
Self-employed artists do not have accessibility to social security programs that other
professionals receive. These include such benefits as pensions, disability insurance, maternity
leave, and employment insurance. The Federal Budget documents suggests artists may have
access to some of these benefits in the future - which is a good first step - but does not
bring them close to the same level as average Canadians. The extension of social security
programs to self-employed artists is consistent with policies applied to other self-employed
groups, such as fishers, taxi drivers and hairdressers, all of whom are eligible for such
programs as EI.
CARFAC (the Canadian Artists' Representation/le Front des artists canadiens) is the national
association of Canada's professional visual and media artists. CARFAC defends artists'
socio-economic and legal rights through advocacy and professional development and
produces a schedule of artists' fees that is widely recognized as the national standard. The
Status of the Artist Act empowers CARFAC to negotiate with national organizations on behalf
of all visual artists in Canada.
For more information contact:
April Britski
Executive Director
CARFAC National
director@carfac.ca
613-233-6161
Toll-free: 1-866-344-6161
©2009, 2010 CARFAC Maritimes