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Exploiting the Predicament: Banks and Elites Want to Tax Home Workers

  • The coronavirus pandemic forced businesses as well as employees to quickly adjust to remote working order to remain operational during the pandemic.
  • Now well-adjusted, companies are considering continuing to allow employees to work from home after the pandemic for profitability and productivity reasons.
  • Banks and elites are rallying behind a research report, conducted by the Deutsche Bank Research, which makes the suggestion that home workers should be taxed to help support workers who are not working from home.

The coronavirus pandemic left many businesses no choice but to switch to remote work, subsidize their workforce and quickly get acquainted with remote working tools and technologies. While many businesses only had to make minor structural adjustments to use the tools and technologies they already own more efficiently, many other companies were forced to invest in various technologies and online tools to successfully make the transition to remote work.

Will working from home become the norm even after the pandemic?

While the transition period might have been a bit rocky, it didn’t take long for businesses to adapt to remote work as home workers began settling into their ‘new’ work environment. However as time progressed, businesses found that they were more profitable and employees were more productive. Businesses could reduce costs due to having to downscale office sizes, save on equipment and supplies costs, as well as operating expenses. Employees also displayed a drastic increase in productivity, even with all the distractions at home, than those working in a controlled and monitored environment.

Businesses are continuing to invest in, and commit to remote working practices to remain operational during the pandemic, and with benefits for both employers and employees, companies are now in the position to take advantage of the technologies they’ve put in place to encourage employees to continue working from home well into the future.

Banks and elites suggest governments impose additional taxes on home workers, what’s the reason?

A research study conducted by Deutsche Bank Research has suggested that a 5% tax rate be imposed on a worker’s salary, if workers choose to work from home when they are not forced to during the pandemic. The report suggests that this 5% tax rate should be paid by employers who choose to let employees work from home and the income generated will help redress the balance offset by the pandemic. The report argues that remote workers are saving money while people who go to work continue to contribute to the economy.

According to the report, one third of people will want to continue to work from home for at least two days a week once the pandemic is over. The tax revenues from these workers, which are paid by employers, will be used to finance grants to millions of people who cannot work from home, and make less than $30,000 a year, in an attempt to re-distribute the gains from the pandemic which has unexpectedly been incurred by some, namely home workers, and not others. 

Are they exploiting a predicament brought on by the pandemic?

At the start of the pandemic, many businesses were faced with the choice to either adapt to remote work or close down until the pandemic subsided. Many businesses opted for the latter option only to find out that they were saving money on operational costs and employees were more productive working from home. That being said, it is very likely that remote work, either on a full-time or part-time basis, will become an established working practice well after the pandemic.

However, now banks and elites are rallying behind the Deutsche Bank Research report which proposes, what would be a government policy, to tax home workers 5% of their salary, paid for by employers, in order to provide grants which would support workers who cannot work from home and earn less than $30,000 a year. Are they exploiting a predicament which came about due to businesses’ need to remain operational during the pandemic, and that was not without its challenges, or is taxing those choosing to work from home during the pandemic to support those who cannot work from home a viable solution worth considering?

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