Steve Payne
I would love to see a return to some sort of tax credit for homeowners (who hire above board contractors)
Canadian Contractor"The HRTC tax credit was brilliant... Rest in peace, Jim Flaherty. A genius."
Here’s another comment on why we all need to get Ottawa to reinstitute the Home Renovation Tax Credit. Thanks to long-time contributor Jim Groves for the post.
“The HRTC tax credit was brilliant. Not only did it immediately pump billions into a struggling economy, it made contractors hand out invoices. A lot of the underground economy is in the smaller jobs, baths, decks, etc. and this all fell into the $10,000 range of work. With HST, new comp rules, Ontario College of Trades, etc., the added burden of taxes is borne by the customer. They feel it is OK to cheat as the government t is taking advantage of them. I would love to see a return to some sort of tax credit for homeowners who report (their projects to government) as it is an incentive to do the right thing. Rest in peace (f0rmer Finance Minister) Jim Flaherty. A genius.”
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The HRTC tax credit did pump billions into a struggling economy for a very short period of time. But it also encouraged homeowners to complete projects that weren’t intended to be done for a few years later.
My renovation company experienced a huge surge in business followed by another huge drop in business after the HRTC program expired.
Enticing homeowners with tax credits interfered with the normal business cycle.
Not to mention that many individuals living on (lower) fixed incomes did not benefit as they are paying very little, or no tax, therefore receiving the credit.
Another case of government interfering with private business gone wrong.