To compensate for the money they aren't spending on commuting and lunch breaks, employees who choose to work from home should pay extra tax, according to Deutsche Bank's economists.
In a new report[1], the bank's researchers argue that the billions in tax money that could be generated as a result could be redistributed to low-income workers who cannot carry out their jobs remotely, like nurses and factory workers.
The report presents a series of radical ideas meant to rebuild businesses and societies after the Covid-19 pandemic, and describes itself as a controversial set of proposals, meant to inspire debate among decision makers.
Deutsche Bank's researchers maintain that new styles of working will require new tax systems. "Working from home will be part of the 'new normal' well after the pandemic has passed," reads the report. "We argue that remote workers should pay a tax for the privilege."
Deutsche Bank researcher Luke Templeman, who co-authored the report, wrote that a tax on WFH should have existed for years, given that telecommuting has boomed in the past two decades with the advent of internet technology. Between 2005 and 2018, the number of Americans who regularly worked from home increased by 173%.
Now, the global health crisis has turbo-charged the trend, and new work habits are here to stay. According to a Deutsche Bank survey, after the pandemic has passed, more than half the people who have been working from home will want to hold on to the option for two or three days a week.
In a country like the UK, where about 33 million workers are employed full-time or part-time, this would mean that around one billion days would be worked from home every year, even after the crisis has passed.
Templeman suggests a 5% tax for every