cloudyn.png
Monday November 30th, 2020 6:23PM

To help economy, bank proposes tax on working from home

By The Associated Press
Related Articles
  Contact Editor

LONDON (AP) — White collar staff reaping the financial benefits of working from home should be taxed to help other workers who aren't getting the same advantages, experts at Deutsche Bank said in a new report.

In its report on how to rebuild the economy after COVID-19, the bank proposed a 5% daily tax on each employee that continues to work from home, which could raise tens of billions of dollars for governments. The money could be used to help lower income workers who have taken on greater risk because their jobs can't be done remotely, it said.

The bank noted that the global pandemic has turbocharged the shift to remote work, a trend that looks set to last for the long term with many workers expecting to spend at least a few days of their work week at home even after the pandemic ends.

These workers benefit from more convenience and flexibility. They also save money directly because they don't have to pay for commuting costs, takeout lunches, or buying and dry cleaning work clothes - but it means those businesses that have grown up to support office workers won't be able to recover and “the economic malaise will be extended,” the report said.

While it doesn't make sense for the government to support, say, a downtown sandwich shop if it doesn't have any more customers from nearby office towers, “it does make sense to support the mass of people who have been suddenly displaced by forces outside their control,” the bank said. “From a personal and economic point of view, it makes sense that these people should be given a helping hand."

The tax would amount to just over $10 a day, assuming the average salary of an American working from home is $55,000. That's roughly the amount the worker might spend on commuting, lunch and laundry, which would leave them no worse off than going into the office, the report said. It could raise up to $48 billion in the U.S. Deutsche Bank carried out similar calculations for Germany and the U.K.

But the proposals faced heavy skepticism.

Andrew Hunter, co-founder of job search engine Adzuna.co.uk said the idea was misguided and predicted it would be incredibly unpopular.

“It punishes progressive companies and those with kids or caring responsibilities, who were responsible during the pandemic, who are already taking on more costs and helping the environment by staying at home," said Hunter. “Let's be honest, there are many better ways to raise taxes!”

___

Follow AP’s coronavirus pandemic coverage at https://apnews.com/VirusOutbreak and https://apnews.com/UnderstandingtheOutbreak

___

Follow Kelvin Chan at www.twitter.com/chanman

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Careers, AP Business - Economy, AP Technology News
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Experts: Virus numbers could be erratic after Thanksgiving
The coronavirus testing numbers that have guided much of the nation’s response to the pandemic are likely to be erratic over the next week or so
6:03PM ( 26 minutes ago )
The Latest: Positive test causes 7 hockey games to be moved
The National Collegiate Hockey Conference has made changes to its 2020-21 schedule because of a positive COVID-19 test and quarantine requirements for the entire Colorado College team
5:52PM ( 37 minutes ago )
Virus keeps Black Friday crowds thin, shoppers shift online
After months of slumping sales and businesses toppling into bankruptcy, Black Friday is offering a small beacon of hope
5:50PM ( 39 minutes ago )
Associated Press (AP)
The Latest: Kansas city's holiday traditions upended
Holiday traditions have been upended across Kansas due to the coronavirus, forcing Santa to stay firmly on the ground in one city and transforming parades elsewhere
4:21PM ( 2 hours ago )
Stocks rise on Wall Street as S&P 500 hits record high
The S&P 500 is closing a shortened session at a record high Friday as investors continue to look forward to the distribution of a COVID-19 vaccine and relief for the economy
2:09PM ( 4 hours ago )
The Latest: Minnesota tops 100 daily deaths for 1st time
The Minnesota Department of Health has reported 101 more COVID-19 fatalities, the first time the state has topped 100 single-day deaths since the start of the pandemic
1:46PM ( 4 hours ago )
AP Business
The Latest: Amid pandemic, WHO pushes more physical activity
The World Health Organization says people need to get more active, warning that up to 5 million deaths worldwide could be avoided each year if people were
8:04AM ( 1 day ago )
The Latest: India's capital mulls curfew amid virus surge
India’s capital New Delhi is considering a nighttime curfew amid the latest coronavirus surge that has battered the city’s healthcare system and overwhelmed its hospitals
6:56AM ( 1 day ago )
The Latest: Germany passes over 15,000 virus deaths
Germany has passed the grim milestone of more than 15,000 deaths from the coronavirus
4:56AM ( 1 day ago )
AP Business - Careers
Stocks rise on Wall Street, headed for solid weekly gain
Stocks are rising on Wall Street Friday at the start of a shortened trading session
10:28AM ( 8 hours ago )
UK retail empire of billionaire Philip Green teeters on edge
The owner of some of Britain’s best-known fashion chains like Topshop appears to be on the brink of collapse following the economic shock of the coronavirus pandemic
10:09AM ( 8 hours ago )
S. Korea agency says N. Korea executed people, shut capital
South Korea's spy agency has told lawmakers that North Korea executed at least two people, banned fishing at sea and locked down its capital as part of frantic anti-coronavirus steps
10:00AM ( 8 hours ago )
AP Business - Economy
For Big Tech, Biden brings a new era but no ease in scrutiny
The big tech companies enjoyed a cozy relationship with the Obama-Biden administration
7:38AM ( 10 hours ago )
UK to launch new watchdog next year to police tech giants
Britain plans to create a new watchdog to police big tech companies including Google and Facebook to counter their market dominance and prevent them from exploiting consumers and small businesses
5:35AM ( 12 hours ago )
The pandemic is changing Hollywood, maybe forever
Until recently, Hollywood's big-budget spectacles have largely tried to wait out COVID-19
1:16PM ( 2 days ago )
AP Technology News
Experts: Virus numbers could be erratic after Thanksgiving
The coronavirus testing numbers that have guided much of the nation’s response to the pandemic are likely to be erratic over the next week or so
6:03PM ( 28 minutes ago )
The Latest: Positive test causes 7 hockey games to be moved
The National Collegiate Hockey Conference has made changes to its 2020-21 schedule because of a positive COVID-19 test and quarantine requirements for the entire Colorado College team
5:52PM ( 38 minutes ago )
Virus keeps Black Friday crowds thin, shoppers shift online
After months of slumping sales and businesses toppling into bankruptcy, Black Friday is offering a small beacon of hope
5:50PM ( 40 minutes ago )
Ravaged by COVID-19, Ravens face issues beyond new schedule
With reigning NFL MVP Lamar Jackson under quarantine as part of an outbreak of COVID-19 that has ravaged the Baltimore Ravens the team has turned its focus from breaking out of a slump to simply getting healthy and back to practice
5:36PM ( 55 minutes ago )
The Latest: Cards' game vs. Rams closed to general public
The Arizona Cardinals say the general public won’t be permitted to attend the team’s home game against the Los Angeles Rams on Dec. 6
5:27PM ( 1 hour ago )