Deutsche Bank proposes tax on people working from home

White-collar workers reaping the monetary advantages of working from home must be taxed to assist different employees who aren’t getting the identical benefits, specialists at Deutsche Bank mentioned in a brand new report.

In its report on learn how to rebuild the financial system after COVID-19, the financial institution proposed a 5 % every day tax on every worker that continues to work from home, which might elevate tens of billions of {dollars} for governments. The money could possibly be used to assist lower-income employees who’ve taken on better danger as a result of their jobs can’t be carried out remotely, it mentioned.

The financial institution famous that the worldwide pandemic has turbocharged the shift to distant work, a development that appears set to final for the long run with many employees anticipating to spend a minimum of just a few days of their work week at home even after the pandemic ends.

These employees profit from extra comfort and suppleness. They additionally save money instantly as a result of they don’t should pay for commuting prices, takeout lunches, or shopping for and dry cleansing work garments – but it surely means these companies which have grown as much as assist workplace employees gained’t have the ability to get better and “the economic malaise will be extended,” the report mentioned.

While it doesn’t make sense for the federal government to assist, say, a downtown sandwich store if it doesn’t have any extra clients from close by workplace towers, “it does make sense to support the mass of people who have been suddenly displaced by forces outside their control,” the financial institution mentioned. “From a personal and economic point of view, it makes sense that these people should be given a helping hand.”

The tax would quantity to simply over $10 a day, assuming the typical wage of an American working from home is $55,000. That’s roughly the quantity the employee would possibly spend on commuting, lunch and laundry, which would depart them no worse off than going into the workplace, the report mentioned. It might elevate as much as $48 billion within the US. Deutsche Bank carried out comparable calculations for Germany and the UK.

But the proposals confronted heavy skepticism.

Andrew Hunter, co-founder of job search engine mentioned the concept was misguided and predicted it might be extremely unpopular.

“It punishes progressive companies and those with kids or caring responsibilities, who were responsible during the pandemic, who are already taking on more costs and helping the environment by staying at home,” mentioned Hunter. “Let’s be honest, there are many better ways to raise taxes!”


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