Podcasters and OnlyFans creators stand to win big under Trump’s tax law

Katherine Green a dominatrix who creates online adult videos wasn t expecting a windfall from President Donald Trump s signature push to make tips tax-free The Houston-based OnlyFans Ltd creator who goes by the title Mistress professionally is not a waitress a rideshare driver or a golf caddy professions typically associated with tipping But new Treasury Department guidelines on Trump s tax law include digital content creators like Green on the break It s really exciting news It was a surprise revealed Green who now hopes to get a decent-sized tax break The inclusion of online content creators such as podcasters and social media influencers promises to sweeten the allure of internet fame and marks the rising prominence of a new class of performers It also helps the Trump administration cultivate a group that both political parties want to leverage to reach new audiences and energize voters More than a quarter of large US-based influencers those with at least followers revealed earning tips according to a scrutiny by the Creative Class Group The new tax law could restructure compensation in an emerging industry to draw even more heavily on gratuities I see this as a way of appearing friendly to a group of people the administration apparently would like to have a relationship with announced Jeffrey Harden a political science professor at the University of Notre Dame Trump and his Democratic rival Kamala Harris embraced digital content creators during the presidential voting process Both presidential candidates went on popular podcasts to broadcast their message and each party s convention granted media credentials to online influencers Since the polling the Trump administration has paraded digital content creators through the White House briefing room with a dedicated new media seat Democrats are also spending big to find online voices who can appeal to voters Huge Win Daniel Abas president and founder of the Creators Guild of America a nonprofit representing digital content creators revealed the tax break will have a very strong economic impact for creators particularly earlier in their careers The vast majority of creators make less than the income cap at which the tax break begins to phase out according to the Creative Class Group examination Creators making up to a year could claim particular portion of the deduction Even before the new tax law tipping was taking on a more significant role in online performers compensation Digital content creators shared a increase in tips in compared to the previous year according to a analysis by eMarketer Inc Adult content creators operating online through platforms such as OnlyFans could be among the biggest beneficiaries since they are particularly reliant on tips Abas stated Green who is working on several platforms in addition to OnlyFans mentioned tips are a big part of her income She is already working with her accountant Katherine Studley to address the law which Trump signed in July I m a smart enough businesswoman to realize that taxes and finances are not my strong suit Green stated in a phone interview while traveling in Greece Studley who specializes in tax preparation for OnlyFans creators called the inclusion of digital creators a huge win for the adult segment of the sphere and a surprising move coming out of a Republican administration aligned with social conservatives She predicted Green is one of a multitude of clients who will benefit The administration s guidelines don t specifically identify adult digital content creators and it s feasible that future formalized guidance from Treasury and the IRS could exclude them But tax guidelines analysts and lawyers noted nothing in the guidance so far suggests adult performers would be excluded Studley cited the inclusion of dancers on the list of job categories eligible for the tip income deduction Customarily tipped which would mean a stripper not a Rockette Studley explained Swelling Cost Extending the tipped income tax break to digital content creators could raise regulatory questions and potentially swell the cost of the four-year tax cut beyond the billion estimated when Congress passed the law initiative and legal experts mentioned The tax break allows qualified taxpayers to deduct up to in tips a year from their tax bills Defining a tip in the digital creative space could be complicated stated Alex Muresianu a senior strategy analyst at the Tax Foundation At this time a tip is a voluntary and optional payment a customer makes in addition to the cost of the goods or services provided If creators provide any additional content or benefits to subscribers that subscription cost would not fit the current definition of a tip Various influencers may be tempted to categorize payments as tips that in reality don t fit the bill or restructure their pay to take advantage of the tax break Muresianu noted I think that will be a thorny issue with implementation he noted The tax structure could reshape compensation substantially in those areas that could lead to reshaping of behavior and also a higher fiscal cost Michael Chittenden an attorney at Covington Burling LLP mentioned the tax break could reshape how various influencers structure their compensation but the effect would likely be tempered by the temporary nature of the tax cut which expires after and the income cap You re not going to have in general people with access to the most of high-dollar sophisticated tax planning available to them to do this But I think ideas will percolate in the creator district he revealed People respond to tax incentives as a general rule