June 17, 2024

Remote workers should pay ‘privilege tax’ to support essential workers, Deutsche Bank argues

Deutsche Bank says those who work from home should pay a tax for the ‘luxury.’

The bank’s researchers say those that are opting to work from home should pay a 5% tax to support those who cannot work from home through a “privilege tax,” according to USA Today.

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“Our calculations suggest the amounts raised could fund material income subsidies for low-income earners who are unable to work remotely and thus assume more ‘old economy’ and health risks,” added in the report by the global head of fundamental credit strategy and thematic research at Deutsche Bank, Jim Reid.

When the COVID-19 pandemic hit back in the spring, many employers instructed their employees to work from home to prevent the spread of the infection.

The report titled, What We Must Do to Rebuild, says those that work from home are saving money because they are able to reduce the cost of transportation, food, and clothing. 

remote work Deutsche Bank tax thgrio.com
Photo by Alex Edelman/Getty Images

But the tax will only impact those who choose to work from home when the government says it is OK for employees to go back to work once the pandemic is over. According to Stanford News 42% of the current workforce in the United States is working from home.

“The sudden shift to WFH means that, for the first time in history, a big chunk of people have disconnected themselves from the face-to-face world yet are still leading a full economic life,” said Luke Templeman a researcher, in the report. “That means remote workers are contributing less to the infrastructure of the economy whilst still receiving its benefits.”

The bank proposes that for a person who makes a salary of $55K, they should pay about 5% which will equal out to about $10 a day, but would generate a whopping $48 billion a year for low-income people.

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Deutsche Bank is an investment bank based in Frankfurt, Germany.

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