Understanding the Passion Tax: Why Is It So Hard to Get Rich Doing What You Love

What is Passion Tax? It is the financial sacrifices and potential limitations on earning potential that often accompany pursuing a career or venture driven by personal passion instead of financial gain. It’s called a “tax” because, like a tax, it represents the cost or deduction from one’s potential income or wealth.

Recently, Marvel announced that Robert Downey Jr. will be playing the iconic role of Dr. Doom in "Avengers: Doomsday," with a reported $80 million salary over two films. Many users took to social media to express their disappointment—both in the actor for getting the role, considering he’s already played Iron Man, and due to the hefty payday. This news follows Jonathan Majors being ousted due to an ongoing court case with his ex-girlfriend for assault and harassment. Majors was found guilty but only sentenced to 52 weeks of a domestic violence intervention program and probation.

While some users felt Downey deserved the pay raise, others disagreed. VFX workers, production assistants, costume designers, and more voiced their frustration, citing the pay disparity considering many of the people responsible for working on these films and bringing them to the public are paid pennies in comparison.

“I made $13.50 an hour as a PA working on Black Panther: Wakanda Forever and this man is getting $80 million?”

“Nobody wants to make a big deal about it, but movie stars make too much. Nobody should be paid $1 million for a single movie, let alone $80 million.”

“Meanwhile, the same film production will have crew members working for a glorified minimum wage and no benefits.”

“Pay him what he’s worth; he’s earned it. RDJ will bring butts into seats; he’s paid his dues,” and it is here that we can see the reference of the passion tax. “Paying dues” in the entertainment industry, or any industry for that matter—whether it be an unpaid internship or a fashion stylist sharing their work with fashion houses only to earn nothing from the sales—it’s all about working your way to the top. Hollywood is known for making stars, and it’s always portrayed in films that an aspiring actor or actress will go to Hollywood, work a dead-end job, and then one day become famous.

There are many who still believe this; they see the idea of doing what you hate to one day do what you love as being worth it in the long run. We hear many underdog stories of men and women who were once homeless or shacking up with a roommate, who are now wealthy and afford vacations in Paris annually. This motivates people to keep going, keep paying their dues.

Rapper Saweetie recently shared that while working on one of her first singles, she was homeless and living in her car. Actress Margot Robbie had about three roommates in a small apartment by the time she landed the role of Naomi in 'The Wolf of Wall Street'. But is it healthy to continue to push this narrative that one should struggle before they can succeed, and how much struggle is actually needed?

When you choose to chase your dreams, there is an opportunity cost because you’re turning down the chance to pursue a more stable and lucrative career for stardom. While being a celebrity can be stable, it’s usually only beneficial to men versus women once they are over the age of 35. Most casting directors are looking for young, fresh talent almost every day, and those faces will become familiar and grow in the industry, but at what cost?

Many child stars have knowingly suffered at the hands of decision-makers and executives such as Dan Schneider or Brian Peck. Namely, Judy Garland, Shirley Temple, Drake Bell, Amanda Bynes, and many more have been victimized by these powerful decision-makers. But if Hollywood is the land where dreams come true, why are so many aspiring talents struggling to get ahead? Well, paying dues can simply mean, “We need people to work on our productions for little to no money, so we’ll convince them that if they do this, they can work their way up eventually and get on the big screen.”

It’s not an impossible concept to grasp, as it would make sense. With so many men and women wanting to be stars, it’s not hard to convince them that they need to work in the background or do VFX for minimum wage for years at a time to officially earn their big break. On the flip side, there are men who will take advantage of women, promising them stardom in exchange for sex. The passion tax is a dangerous notion, especially with nepotism seeping its way into the industry on a larger scale than ever before.

NEPOTISM

Nepotism is the practice among those with power or influence of favoring relatives, friends, or associates, especially by giving them jobs. Some famous "nepo babies" include:

• Kendall Jenner
• Emma Roberts
• Maya Hawke
• Maude Apatow
• Dakota Johnson
• Zoe Kravitz
• Ever Anderson

And more recently, we're seeing this in sports with Bronny James and Kiyan Anthony. Many opportunities, roles, and projects that your average basketball player, PA, or sound technician would work hard to audition for are given away with one phone call. These stars often don't have to pay any dues; they can star in a film their parents are working on or alongside their parents, such as Jaden Smith and Will Smith in The Pursuit of Happyness or Willow Smith and Will Smith in I Am Legend.

From a young age, they snag roles in high-budget films, adding to their list of movie credits, which catapults them up the ladder, making it easier to get larger roles in the future. The passion tax in Hollywood is glamorized so that men and women feel they are working towards something bigger than themselves. However, if they aren’t willing to do things that are against their morals or initial goals, it may be a waste of time. The adult industry pipeline is prevalent here as well.

While one person can go to Hollywood to star in the biggest blockbusters, the only opportunities to be in front of a camera may be adult film roles. Aspiring actors or actresses may take on these opportunities to earn quick cash, especially if it’s low-budget, thinking no one will see it anyway. But this can backfire, as projects that don't see commercial success initially can become successful later if the director or team continues their work.

PREDATORS

Hollywood feeds its predators and makes its movies by telling aspiring entertainers that they need to go there to become stars. But is it worth the emotional and physical toll on your body and mental health to pursue a career in the entertainment industry? The answer is likely no, especially in 2024. Honest management companies like Branndet and The Gersh Agency have deep-rooted connections that can get you in the door.

The sacrifices you make should always be to get a manager and agent, not a movie role. The roles will come when the right people represent you and sell you as a professional. Hollywood execs and some corporate giants know whom to prey on—they seek talent that is non-union or refuse to share information about a job opportunity once they learn you are under management. Even in the music industry, Diddy is a notable example of these predatory practices.

“I remember when I was around seventeen and working at Rite Aid in the Bronx. A man came in, very polite, and reminded me a lot of T-Pain, the rapper. While checking him out, he sparked up some small talk and told me he thought I should be a model. Next thing I know, he’s giving me his number and telling me to call him,” shares Lisa K. Stephenson, Author of The Snows of Khione.

“At that time in my life, I really wanted to be a singer, so I called him. He invited me to his home, and I took a cab. When I entered, I noticed bikinis laid out on a couch in his living room. He told me to put them on, but I refused because I did not want to be naked. He then showed me some mesh miniskirts, which I also refused to wear, and I made my way out.

I was terrified, but he calmly approached me and asked if I wanted to take some photos outside. I obliged. Shortly after, I left, and to this day, I have no idea what he’s done with my photos. I don’t take it for granted that I was lucky because things could have gone much differently. I have a few other stories, too (lol).”

Music industry “gatekeepers” can be predators as well, and it’s no different from pursuing a career in acting. It’s a tradeoff: you get access to our resources to make you rich and famous, and we get access to you—whether by exploiting your musical talents or your body. The idea that you need to go to Hollywood, meet with the right people, have meetings in their homes, live in your car, work a low-wage job, or suffer in silence on a production set is ludicrous.

With scamming at an all-time high, it’s getting harder and harder for aspiring talent to recognize who is legit and who is not. But one thing is certain: don’t always assume a company is trying to swindle you if they ask for an application fee upfront. Sometimes this is to protect their interest as well because you’re not the only one afraid of being swindled.

Managing an artist takes an investment that does not come from the artist. Someone has to see you and believe in you enough to want to spend their hard-earned money on you in hopes that you will be a star and be able to repay them. That’s what management is all about. So, it’s not uncommon for a manager to request an application fee to make sure that you, the artist, are serious about your craft and won’t simply ghost them.

The passion tax isn’t going away anytime soon, but our advice is to be vigilant, lean into your art, and if you can’t find anyone to believe in you, believe in yourself enough to invest in yourself. Pay for ad space in traditional publications (this isn’t a plug, it’s genuine advice) and pay for guest posting on blogs within your niche.

Do the work and don’t just rely on a social media post to boost your career. As we can see with many artists now, labels may sign you from one viral song on social media, but they are going to put you in a 360 deal, shelf you (in some cases), and block you from releasing your art to the world until they say so. Never give away your power; you have more of it than you know.

by Harley Miller