Tax increase on large entertainment venues will hurt theaters

While I applaud Mayor Rahm Emanuel’s efforts to spotlight the incredible richness and variety of art being created in Chicago’s neighborhoods, I don’t think that as far as live theater is concerned this is an appropriate or fair tax (“A smarter tax for a city proud of its art scene”— Oct. 18).

The benefit to small live theaters is negligible, while the impact on our large theaters will be enormous. This hurts Chicago. Theater is among Chicago’s most unique cultural assets. One reason is because in Chicago we have an ecology wherein all theaters are dependent on the success of both small nonprofit theaters as well as large commercial theaters. Large commercial venues benefit small local theaters inmany ways: They provide opportunities for bigger exposure for artists, opportunities for high- paying work for actors and musicians as well as other artists and technicians and hundreds of full- time jobs in Chicago. The Broadway shows attract audiences that may be taking their first trip to the theater, and who will then attend a show in their neighborhood or at a small theater.

While themayor suggests that raising this tax will benefit small local venues, it will not do that for theater. The comparison drawn by the SunTimes editorial between commercial theatrical production and the United Center is apples to oranges. The business model is entirely different.

The economic impact of theater in Chicago ( commercial and nonprofit) is in the hundreds of millions of dollars annually. The contribution of theaters, large and small, to the cultural and economic life of the city is undeniable, and a higher tax rate will diminish that contribution.

The Sun- Times Editorial Board points out that the producers of “Hamilton” will not be hurt by this tax. Not every show is “Hamilton,” and while the tax might not prevent Beyonce fromplaying the United Center, itmight make commercial theatrical producers think twice about bringing a show to Chicago.