Working from home (WFH) is such a privilege that you should actually pay more for it: that was the premise of a report from Deutsche Bank economists[1], which has created something of a stir.
The researchers argued that WFH will remain part of the 'new normal' after the pandemic has passed, and that this poses a big problem for economies with long-established infrastructure built around face-to-face working. The answer: remote workers should pay additional tax to support the broader economy and those unable to work from home.
"For years we have needed a tax on remote workers -- COVID has just made it obvious. Quite simply, our economic system is not set up to cope with people who can disconnect themselves from face-to-face society," the report said[2].
The COVID-19 pandemic of 2020 has certainly accelerated the trend towards home working, with governments ordering workers to stay put where possible. When the lockdowns lift, it's unlikely that any return to the office will be full-time or for everyone.
The economists argue in favour of a relatively modest tax -- perhaps $10 a day -- to be paid by the remote worker, or by the employer if they do not provide staff with an office to go to.
There are plenty of reasons disagree with this proposal, not least because the idea of taxing people more for working from home, instead of travelling to the office and buying a sandwich at lunchtime, seems like a challenge. It also throws up many more questions.
Taxing matters
If economic inactivity is the issue, should you be taxed more if you cycle to work with a packed lunch? Conversely, should you pay even less tax if you promise to drive a big car into the city