Choosing to earn a living from home once the pandemic ends is a privilege that you should pay for, according to strategists from Deutsche Bank AG’s research arm.
▪ The team 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 U.S. and about 16 billion euros ($18.8 billion) in Germany, they say. “Working from home will be part of the ‘new normal’ well after the pandemic has passed,” the strategists led by Luke Templeman wrote in a note. “We argue that remote workers should pay a tax for the privilege.”
▪ Deutsche Bank Research undertook a survey to examine the major global shift toward remote work that occurred as a result of the Covid-19 pandemic. 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.
▪ Working in the comfort of one’s own home saves money on travel, lunch and socializing, according to Deutsche Bank Research, and offers greater job security and flexibility. Yet people who are working remotely are also contributing less to the infrastructure of the economy, potentially extending the slump in national growth.
▪ 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 be taxed for each day they work remotely, according to Deutsche Bank Research. In the U.S., 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.