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.
ALSO READ: The Work From Home revolution
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.”
©2020Bloomberg
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU