Chapter 7: Canadians cutting their renovation spending

http://www.canada.com/business/fp/Canadians+cutting+their+renovation+spending/1667362/story.html

Summary
Researchers at Altus Group reported that it is expected that renovation spending will decline 5% this year. “Even with a new tax credit, Canadians have cut their renovation spending after 10 years of steady growth” The federal government has introduced a tax credit of up $1,350 on $10,000 spent in renovation that was completed before February of 2010. According to the Altus Group, most of the renovations would have occurred even without the tax credit. Last year the renovation spending was $21.3 billion which was $1.6 billion higher, compared to the year before. The housing sector, which is hugely dependent on the renovation industry, had a value of $53 billion last year. Altus Group says that it’s not all pessimistic. With reasons such as the aging houses with There hope in the sector after all!

Connection
The topic that Chapter 7 covers is “Money and the Canadian Banking System” and when citizens are given a tax credit, it acts as money for them. First off Canadians would spend money on renovation, then they would get a tax credit off their income tax. Even though they're not actually getting actually money back in return, they are getting some type of currency. Having this tax credit, reduces the amount of income tax that they would have to pay. This is extremely good if the family is making a lot of income.

Reflection
Knowing that the government offers a tax credit for citizens when they spend on renovation, I would strongly suggest to my parents to fix up the house! This move that the government has decided on will act as an incentive for families just like my own. Although my parents have been thinking of getting some work done on the house, they've just been too lazy to getting around to it. But now that they're aware of the tax credit, and the deadline of February 2010, that should be able to motivate them.