Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

People working from home 'should pay more tax' after pandemic

People working from home 'should pay more tax' after pandemic

Staff who continue to work from home after the pandemic should be taxed to help support workers in lower-paid jobs, a new report has suggested.

Research from Deutsche Bank said workers should be taxed 5% of their salary each day if they choose to work remotely after coronavirus restrictions lift.

The bank argues the tax would leave the average employee no worse off, since they would be saving money on commuting, buying lunch out or purchasing more work clothes.

For employers who do not provide their workforce with a permanent desk, the bank suggests they should pay a work-from-home tax while those who are self-employed or on low-incomes should be exempt.

According to the report, this tax could create $48 billion (£36 billion) a year in the US and €20 billion (£17.8 billion) in Germany.

In the UK, Deutsche Bank calculates the tax could generate £7bn a year, enabling the Government to pay out £2,000 grants annually to low-income employees who have to travel to work as well as those under threat of redundancy.

It comes as the UK government’s website states Brits can claim tax relief on some of bills if they are required to work from home.

Deutsche Bank strategist Luke Templeman wrote: ‘For years we have needed a tax on remote workers. Covid has just made it obvious.


Deutsche Bank suggests staff who work from home should be taxed


‘Quite simply, our economic system is not set up to cope with people who can disconnect themselves from face-to-face society.

‘Those who can work from home receive direct and indirect financial benefits and they should be taxed to smooth the transition process for those who have been suddenly displaced.’

He also said: ‘A big chunk of people have disconnected themselves from the face-to-face world yet are still leading a full economic life.

‘That means remote workers are contributing less to the infrastructure of the economy whilst still receiving its benefits. That is a big problem for the economy.’


Deutsche Bank suggests staff who work from home should be taxed


A 5% work-from-home tax works out at around £7, based on a salary of £35,000.

It comes as millions of people in the UK have transitioned into remote working as employers closed offices to contain the spread of coronavirus.

Meanwhile, many employers have said staff will now be allowed to work from home permanently – either full-time or part-time.

The Deutsche Bank research also shows one-third of people want to continue working at least two days a week from home once the pandemic is over.

But the bank said there are millions of workers, like factory staff and nurses, who cannot work remotely.

Mr Templeman wrote: ‘The virus has benefitted those who can do their jobs virtually, such as bank analysts, and threatened the livelihoods or health of those who can’t.’

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
U.S. and Hungarian Officials Talk About Economic Collaboration and Sanctions Strategy
Technology Giants Activate Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation on Succession
Zelensky Calls on World Leaders to Back Peace as Tensions Rise with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advancement.
Rubio Touches Down in Riyadh Before Key U.S.-Russia Discussions
Students in Serbian universities Unite to Hold Coordinated Protests for Accountability.
US State Department Removes Taiwan Independence Statement from Website
Abolishing opposition won't protect Germany from Nazism—this is precisely what led Germany to become Nazi!
Transatlantic Gold Rush: Traders Shift Bullion in Response to Tariff Anxieties and Market Instability
Bill Ackman Backs Uber as the Company Shifts Towards Profitability
AI Titans Challenge Nvidia's Supremacy in Light of New Chip Innovations
US and Russian Officials to Meet in Saudi Arabia Over Ending Ukraine Conflict. Ukraine and European leaders – who profit from this war – excluded from the negotiations.
Macron Calls for Urgent Summit as Ukraine Conflict Business Model is Threatened
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Bolster Its Military in Light of Uncertain US Backing
Chinese Zoo Confesses to Dyeing Donkeys to Look Like Zebras
Elon Musk is Sherlock Holmes - Movie Trailer Parody featuring Donald Trump's Detective
Trump's Greenland Suggestion Sparks Sovereignty Discussions Amid Historical Grievances
OpenAI Board Dismisses Elon Musk's Offer to Acquire the Company.
USAID Uncovered: American Taxpayer Funds Leveraged to Erode Democracy in Europe Until Trump Put a Stop to It.
JD Vance and Scholz Did Not Come Together at the Munich Security Conference.
EU Official Participates in Discussions in Washington Amid Trade Strains
Qatar Contemplates Reducing French Investments Due to PSG Chief Investigation
Germany's Green Agenda Encounters Ambiguity Before Elections
Trump Did Not Notify Germany's Scholz About His Ukraine Peace Proposal.
Munich Car Attack Escalates Migration Discourse Before German Elections
NATO Allies Split on Trump's Proposal for 5% Defense Spending Increase
European Parliament Advocates for Encrypted Messaging to Ensure Secure Communications
Trump's Defense Spending Goal Creates Division Among NATO Partners
French Prime Minister Bayrou Navigates a Challenging Path Amid Budget Preservation and Immigration Discourse
Steering Through the Updated Hierarchy at the European Commission
Parliamentarian Calls for Preservation of AI Liability Directive
Mark Rutte Calls on NATO Allies to Increase Defence Expenditures
Dresden Marks the 80th Anniversary of the World War II Bombing.
Global Community Pledges to Aid Syria's Political Transition
EU Allocates €200 Billion for AI Investments, Introduces €20 Billion Fund for Gigafactories
EU Recognizes Its Inability to Close the USAID Funding Shortfall Due to Stalled US Aid
Commission President von der Leyen Missing from Notre Dame Reopening Due to Last-Minute Cancellation
EU Officializes Disinformation Code for Online Platforms, Omitting X
EU Fails to Fully Implement Key Cybersecurity Directives
EU Under Fire for Simplification Discussions Regarding Corporate Sustainability Reporting
Shein Encountering Further Information Request from the EU During Ongoing Investigation
European Commission Initiates Investigation into Shein as It Aims at Chinese E-Commerce Regulations
German Officials Respond to U.S. Proposal for Peace Talks with Russia
Senate Approves Robert F. Kennedy Jr. as Secretary of Health and Human Services.
Trump and Putin Engage in Discussions on Ukraine Peace Negotiations Amid Worldwide Responses
Honda and Nissan End Merger Talks
×