The debate frenzy distracts from the US political realities


James Zogby
  • English
  • Arabic

Long before last week's presidential debate, the contours of the US election had already been set. Despite the silly reactions from pundits, on both the right and left, the debate added very little that will affect the outcome of the contest.

It was like watching the Yankees versus the Red Sox. Both sides cheered for their team. One side came away a bit more excited, the other a bit deflated, but no one changed sides.

Putting aside the exaggerated media reaction that "Romney triumphed" or "Obama blew it", the debate itself was quite boring. Mr Romney's performance might provide a shot in the arm to Republicans, many of whom have been troubled by their candidate and his lacklustre campaign. It may change the mood, but not the game.

More important than the debate are several factors that have defined the political landscape in 2012.

First and foremost is the demographics of the electorate. On the Democratic side, there is a dramatic increase in "minority" voters. Two decades ago, this group comprised less than 20 per cent of all voters. Today, they may be as high as 29 per cent. Estimates are that 80 per cent will vote for Mr Obama.

Add to this group young voters, educated professional women and left-leaning voters - not exactly the dependent "takers" of Mr Romney's imagined 47 per cent.

The core of the Republican coalition is increasingly white, middle aged and older, and male, with many overlapping "born again" Christians. It was from within this demographic that the Tea Party was born, and the effect they have had on this year's contest has been substantial.

After flexing their muscles in a Republican takeover of Congress in 2010, the Tea Party helped to shape the field of 2012 GOP presidential aspirants. More moderate Republicans were discouraged from entering the contest, and those who did run adopted more extreme positions. Mr Romney's statements during the debate would have seen him booed off stage during the Republican primary.

Another defining point in the 2012 election came from a Supreme Court decision. The Citizens United case opened the door for the obscene amounts of money - much of it unreported - that is allowing the so-called Super PAC to fill the airways with mostly negative ads.

Three additional events have played a significant role in defining the campaigns. Latinos had been frustrated by the failure of the Obama administration to make immigration reform a priority. The White House has argued that it lacked the support in Congress to pass legislation.

But this past summer, Mr Obama unilaterally acted to provide temporary relief to undocumented young people who had been brought into the United States illegally as children and were at risk of deportation. This reprieve, while initially criticised by Republicans, has energised the important Latino vote for Mr Obama. And as Republicans realised they were about to be swamped by this growing bloc, they muted their criticism.

The same can be said of Mr Obama's decision to end the "don't ask, don't tell" policy, which discriminated against homosexuals serving in the US military, and his late recognition of equal marriage rights.

Gays comprise a substantial part of the liberal electorate, and equal rights has become a litmus test among young voters.

The final point was Mr Romney's now-infamous "47 per cent" video. For months Democrats had been working to define Mr Romney as an elitist who was out of touch with the working class. Mr Romney's off-the-cuff remarks to an audience of well-heeled donors has done just that.

The pundits' "group think" feeding frenzy will shape headlines for a day or two, but it will not alter the landscape. I doubt that in the long term whether the debates will substantially alter the size or composition of either candidate's support base.

James Zogby is the president of the Arab American Institute

On Twitter: @aaiusa

About Housecall

Date started: July 2020

Founders: Omar and Humaid Alzaabi

Based: Abu Dhabi

Sector: HealthTech

# of staff: 10

Funding to date: Self-funded

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

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Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

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Thalassaemia is part of a family of genetic conditions affecting the blood known as haemoglobin disorders.

Haemoglobin is a substance in the red blood cells that carries oxygen and a lack of it triggers anemia, leaving patients very weak, short of breath and pale.

The most severe type of the condition is typically inherited when both parents are carriers. Those patients often require regular blood transfusions - about 450 of the UAE's 2,000 thalassaemia patients - though frequent transfusions can lead to too much iron in the body and heart and liver problems.

The condition mainly affects people of Mediterranean, South Asian, South-East Asian and Middle Eastern origin. Saudi Arabia recorded 45,892 cases of carriers between 2004 and 2014.

A World Health Organisation study estimated that globally there are at least 950,000 'new carrier couples' every year and annually there are 1.33 million at-risk pregnancies.

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Date started: 2012

Founder: Amir Barsoum

Based: Dubai, UAE

Sector: HealthTech / MedTech

Size: 300 employees

Funding: $22.6 million (as of September 2018)

Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC

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“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

Paatal Lok season two

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