Cash operators undermine legitimate business and harm consumers, and reduce government tax revenue.
CHBA therefore recommends a modest targeted home renovation tax credit to tackle the underground cash economy. An ongoing federal tax measure requiring receipts would undermine cash operators, as past federal programs have shown that even modest incentives can dramatically suppress the underground economy. Careful structuring of incentives could ensure that all or most costs would be offset by increased tax revenues. The purpose of this is not stimulus; it would be a modest measure to address the underground economy with minimal fiscal impact. Such a measure could address key socio-economic policy priorities by focusing on first-time buyers, aging-in-place seniors, and/or those undertaking energy efficiency renovations.
Thank you very much.