German multinational investment bank Deutsche Bank has suggested that those working from home should pay more in taxes, with proceeds going to the underprivileged.
With employees saving money on commuting and eating out, the difference would balance out according to the bank. However, this does not take into account that remote workers are still paying for increased use of electricity, internet, heating and home office supplies.
More specifically, the bank says that people working from home after the pandemic has ended should pay 5% of their earnings in tax for every day they don’t work out of the office, which could be paid by the employers rather than employees.
The report indicates that a tax like this could net €20 billion in Germany, £7 billion in the UK, and $49 billion in the U.S. annually.
“Working from home will be part of the ‘new normal’ well after the pandemic has passed,” said Jim Reid, global head of thematic research at Deutsche Bank. “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.”
While on the surface, taxation to benefit low-income workers or those who are unemployed seems great, this suggestion coming from a controversial multinational investment bank seems futile.