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Banksters call for a 5 percent 'privilege' tax on people choosing to work from home


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The remote working and learning taken as a preventative measure against COVID-19 transmission has rendered millions of Americans housebound. Offices, schools and other public working spaces have been closed for months as the pandemic rages on.

A new report commissioned by financial giant Deutsche Bank proposes that for individuals who continue to work from home rather than in an office, a 5 percent income tax should be levied to support lower income workers who do not have the opportunity to stay home.

As part of its “Rebuild” report, Deutsche Bank calculates that the average worker would not be any worse off by paying this tax because of the costs saved when working remotely, Business Insider reports.

The hypothetical tax has the potential to generate $49 billion per year in the U.S., as well as 20 billion euros for Germany and 7 billion pounds in the U.K.

Its goals would be to help support lower-wage workers who must return to their offices daily despite the global health crisis.

It notes that the self-employed and lower-paid staff should be excluded from the tax, and only apply in countries where the government has not instructed people to work from home.

In the U.S., the Centers for Disease Control and Prevention (CDC) has not formally ordered all work spaces be shut down amid the pandemic. It does offer tips on how to protect staff and slow the spread of COVID-19 around office buildings.

"Working from home will be part of the 'new normal' well after the pandemic has passed. We argue that remote workers should pay a tax for the privilege," Jim Reid, research strategist at Deutsche Bank, said in the report.

A 5 percent income tax for remote workers is justified primarily from the money saved between transportation and food, as well as the added flexibility working remotely creates.

"That means remote workers are contributing less to the infrastructure of the economy whilst still receiving its benefits," the report's authors wrote.

Using a salary of $55,000 as an example, if the 5 percent tax was levied on this individual, it would amount to about $10 per day.

These additional funds could go toward covering costs for low-income workers who are obligated to come into a physical workplace.

"The $48 billion raised could pay for a $1,500 grant to the 29 million workers who cannot work from home and earn under $30,000 a year," said Luke Templeman, of Deutsche Bank.

"For the first time in history, a big chunk of people have disconnected themselves from the face-to-face world yet are still leading a full economic life,” he added.

Many workers in lucrative fields, including those employed in technological and financial companies, have had an easier transition working from home than employees who work at locations like restaurants and department stores where physical presence is part of the job.

A large swath of companies have decided to delay their returns of office spaces, with companies like Google, Uber, Airbnb, Slack, Target, Microsoft and The New York Times delaying office reopenings to summer of 2021 — an estimate of when a COVID-19 vaccine will be widely distributed.

“I hope this will offer the flexibility you need to balance work with taking care of yourselves and your loved ones over the next 12 months,” Google’s CEO Sundar Pichai wrote in an email to employees about potentially returning to offices in July 2021, per The New York Times.

https://thehill.com/changing-america/respect/poverty/525480-deutsche-bank-calls-for-a-5-privilege-tax-on-people-choosing

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Not sure how this would work if you wanted to WFH, and then were "requested  by employer to come into office for say a meeting, would you get the 5% back for days working in the office, paid expenses for travelling to office? Can't have it only one way which benefits the employer.

Seems like a very short sighted idea, which will turn out to be very complex and lots of blowback from employees.

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Some confusion here. 

I've seen this reported by BBC as a proposed payrolltax paid by employers. This appears to suggest an income tax of 5%. 

I'm actually not opposed to the former (with some qualifications). The latter is madness. 

Qualifications; I would only apply the tax on employers who are actually shifting their whole operation to WFH or wholesale closing offices i.e. if you're about to make a shedload more money by closing the office and sacking the support staff, it's not unreasonable to be asked to chip in a bit to help manage the transition period for those set to lose out. 

If it's set at the right rate, companies win, employees get more time and disposable income and the increased pressure on the welfare state of these decisions gets mitigated. I could even see a scenario where the cost/benefit analysis sees office closures in areas where it's visble to convert commercial to residential while smaller places (where walking/cycling to work) keep offices open and town centres alive.

Not a bad premise and worth thinking about but.....

Income tax? No. Absolutely no ******ing way will I, having worked right the way through this shit and received ****** all additional support, see 5% of my salary go to foot the bill for furlough and risky bounceback lending. That will be poll tax riots mach 2. 

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The remote working and learning taken as a preventative measure against COVID-19 transmission has rendered millions of Americans housebound. Offices, schools and other public working spaces have been closed for months as the pandemic rages on.

A new report commissioned by financial giant Deutsche Bank proposes that for individuals who continue to work from home rather than in an office, a 5 percent income tax should be levied to support lower income workers who do not have the opportunity to stay home.

As part of its “Rebuild” report, Deutsche Bank calculates that the average worker would not be any worse off by paying this tax because of the costs saved when working remotely, Business Insider reports.

The hypothetical tax has the potential to generate $49 billion per year in the U.S., as well as 20 billion euros for Germany and 7 billion pounds in the U.K.

Its goals would be to help support lower-wage workers who must return to their offices daily despite the global health crisis.

It notes that the self-employed and lower-paid staff should be excluded from the tax, and only apply in countries where the government has not instructed people to work from home.

In the U.S., the Centers for Disease Control and Prevention (CDC) has not formally ordered all work spaces be shut down amid the pandemic. It does offer tips on how to protect staff and slow the spread of COVID-19 around office buildings.

"Working from home will be part of the 'new normal' well after the pandemic has passed. We argue that remote workers should pay a tax for the privilege," Jim Reid, research strategist at Deutsche Bank, said in the report.

A 5 percent income tax for remote workers is justified primarily from the money saved between transportation and food, as well as the added flexibility working remotely creates.

"That means remote workers are contributing less to the infrastructure of the economy whilst still receiving its benefits," the report's authors wrote.

Using a salary of $55,000 as an example, if the 5 percent tax was levied on this individual, it would amount to about $10 per day.

These additional funds could go toward covering costs for low-income workers who are obligated to come into a physical workplace.

"The $48 billion raised could pay for a $1,500 grant to the 29 million workers who cannot work from home and earn under $30,000 a year," said Luke Templeman, of Deutsche Bank.

"For the first time in history, a big chunk of people have disconnected themselves from the face-to-face world yet are still leading a full economic life,” he added.

Many workers in lucrative fields, including those employed in technological and financial companies, have had an easier transition working from home than employees who work at locations like restaurants and department stores where physical presence is part of the job.

A large swath of companies have decided to delay their returns of office spaces, with companies like Google, Uber, Airbnb, Slack, Target, Microsoft and The New York Times delaying office reopenings to summer of 2021 — an estimate of when a COVID-19 vaccine will be widely distributed.

“I hope this will offer the flexibility you need to balance work with taking care of yourselves and your loved ones over the next 12 months,” Google’s CEO Sundar Pichai wrote in an email to employees about potentially returning to offices in July 2021, per The New York Times.

https://thehill.com/changing-america/respect/poverty/525480-deutsche-bank-calls-for-a-5-privilege-tax-on-people-choosing

When do we start building the guillotines ?

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The Times rich list - 94% are self made 

Who cares?

Most rich-list billionaires these days get their money from property, investment or banking. IOW, rentierism.

In the old days, billionaire money came from making things, building things or growing things.

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Costs of not working from home are paid for by the worker / employer.

Now bankers, who were bailed out in the billions and billions, come up with something called a "privilege tax" so people pay for the cost advantage of working from home.

The argument will of course be that it's fairer to people who can't work from home, completely missing the fact that if we had a functioning economy that wasn't so debt based there would be no need.

Banks: "Fight among yourselves while we bleed you dry."

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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