Earning a living remotely is a privilege that you should be paying for, according to Deutsche Bank AG strategists. “Working from home will be part of the ‘new normal’ well after the pandemic has passed,” Deutsche Bank strategists led by Luke Templeman wrote in a note. “We argue that remote workers should pay a tax for the privilege.”
The strategists propose a 5% levy for those who work from home on a regular basis and not because of a government lockdown mandate. Such a measure could raise $48 billion a year in the US and about 16 billion euros ($18.8 billion) in Germany, they say, to fund subsidies for low-income earners and essential workers who are unable to work remotely.
Deutsche Bank undertook a survey to examine the major global shift toward remote work that occurred as a result of the Covid-19 pandemic, which may endure as many professionals discover financial, personal and professional benefits of the change.
According to the results, more than half of those working remotely want to continue doing so for between two and three days a week even after the health crisis ends.
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The survey of 800 people was conducted in September. Working in the comfort of one’s own home saves money on travel, lunch and socialising, according to Deutsche Bank, and offers greater job security and flexibility, the strategists said. Yet, people who are working remotely are also contributing less to the infrastructure of the economy, potentially extending the slump in national growth, they said.
The proposed levy would be paid by the employer if they don’t provide their employee with a desk, whereas if the worker decides to stay home based on their own needs, they would then pay a tax out of their salary for each day they work remotely, according to Deutsche Bank.
In the US, the strategists calculate, such a tax could pay for a $1,500 grant to the 29 million workers making under $30,000 a year and unable to work from home. “It does make sense to support the mass of people who have been suddenly displaced by forces outside their control,” Templeman said. “Those who are lucky enough to be in a position to ‘disconnect’ themselves from the face-to-face economy owe it to them.”