Deutsche Bank is Proposing 5% Remote Work Tax

The tax would be imposed on people who choose to work from home rather than for those who are working from home because of recommendations or mandates.

0
68
Deutsche_Bank_is_Proposing_5%_Remote_Work_Tax

Deutsche Bank reported the findings of a survey that showed that more than 50 percent of workers who worked remotely from once stay-at-home orders were in place want to continue working at home. A research report from the bank illustrated that a 5 percent tax rate on as little as two to three days of work-from-home salary could infuse $48 billion into the U.S. economy, £6.9 billion for the U.K, or 15.9 billion euros for Germany. That amount could pay for $29 million $1,500 grants for those who are underemployed. The report showed that the taxes raised could help pay for workers bound by the stay-at-home orders but have job positions that can’t be performed at home. The research team at the bank said the ability to work from home is a “privilege.”

Luke Templeman, a thematic strategist for the bank, said that the remote worker tax has been needed for many years, but that the pandemic crisis has made it more obvious.

Remote workers save on everyday expenses associated with working away from home, including travel expenses such as gas or public fare, lunch, work clothes, and more. The report also pointed out that remote workers contribute less to the economic infrastructure but still receive the benefits of that infrastructure.

Templeman believes that remote workers should pay a levy “in order to smooth the transition process for those who have suddenly been displaced” by the pandemic. He said people are not accustomed to disconnecting from being in person with others. 

The world exists through an economic infrastructure that has taken centuries to create, and Templeman points at that much of that economy revolve around working face-to-face. Even still, the work-from-home trend seems to be here to stay for many.

Since the pandemic has begun, there are more than ten times, or 56 percent of the workforce, the usual number of people who are working from home. On the other hand, the U.K. has seen the number increase by 47 percent or seven times the typical stay-at-home workers. 

Templeton also said that remote workers have higher income averages for the most part, so if a tax is initiated, it would have little impact on a worker’s salary and would likely equate to approximately $8 to $10 per day in the U.S., which is nearly what an employee typically spends on lunch and commuting expenses. Templeton explained that the remote tax wouldn’t apply for work-from-home mandates. It also wouldn’t apply to workers who have lower incomes or those that are self-employed.

LEAVE A REPLY

Please enter your comment!
Please enter your name here