US President Joe Biden walks on the South Lawn of the White House before boarding Marine One in Washington, DC, US, June 25 for a trip to Camp David. EPA
US President Joe Biden walks on the South Lawn of the White House before boarding Marine One in Washington, DC, US, June 25 for a trip to Camp David. EPA
US President Joe Biden walks on the South Lawn of the White House before boarding Marine One in Washington, DC, US, June 25 for a trip to Camp David. EPA
US President Joe Biden walks on the South Lawn of the White House before boarding Marine One in Washington, DC, US, June 25 for a trip to Camp David. EPA

A breakthrough for Biden and his first major presidential misstep


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When US President Joe Biden makes a mistake it is significant and these days, unexpectedly, surprising.

After four years of extraordinary missteps and blunders by Donald Trump and his administration, at least in terms of governance if not populist politics, Joe Biden has appeared remarkably adroit at avoiding self-inflicted wounds. That is unexpected because in his eventful 40-year political career, Mr Biden has been prone to gaffes and malapropisms.

But in his political campaigns last year and as president this year, a very different Mr Biden has emerged. He has been remarkably cautious and disciplined, well protected by the Democratic political apparatus surrounding him, and has limited unscripted public appearances.

He and his team are clearly aware that, to be an effective president, he needs to escape the tendency to let inanities slip, especially to strike a marked contrast with Mr Trump.

Mr Biden scored a major early success with a giant pandemic economic recovery bill. In order to avoid the congressional losses first-term presidents generally suffer, and which he cannot afford, he needs another major legislative accomplishment before next year's midterms.

The two main initiatives are on infrastructure funding and voting rights.

If Democrats can stick together they have 50 votes out of 100, and Vice President Kamala Harris can then break the 50-50 tie. But that won't help the Democrats on voting legislation.

Republicans are united in refusing to allow the Democrats’ original voting protection bill from even coming to debate in the Senate, let alone passing, both of which require 60 and not 50 or 51 votes.

Infrastructure seemed more promising given that some Republicans might be tempted to claim credit for supporting a popular major spending programme. Under the budget "reconciliation" exception, certain spending measures can be passed by a simple Senate majority.

Most Democrats have soured on the idea of negotiating with Republicans

The Senate Parliamentarian, a non-partisan official who adjudicates Senate rules, concluded that even though the Democrats relied on reconciliation to pass the coronavirus spending package, they could do it again this year on infrastructure.

It is not yet clear what parts of proposed infrastructure legislation could be adopted on a strict, party-line 50-51 vote, but a significant package undoubtedly could.

Most Democrats have soured on the idea of negotiating with Republicans, particularly after former president Barack Obama spent many months negotiating his proposed healthcare legislation with Republican senators, only to have them eventually admit that they were not prepared to agree to anything and had simply been wasting time.

Nonetheless, Mr Biden has been promoting bipartisanship, along with two key Democratic senators, Joe Manchin of West Virginia and Kyrsten Sinema of Arizona. Since Democrats can't pass anything without their support, their influence has been greatly magnified.

Most Democrats, for example, are keen on abolishing or at least revising the filibuster. They could do that with just 51 votes, but they don't have them because of opposition by Mr Manchin and Ms Sinema.

Mr Biden’s intensive infrastructure negotiations with Republican senators exasperated many Democrats.

AFP
AFP

But he was following his own inclinations, pleasing these two crucial senators, and exploring what, if anything, Republicans might agree to that either couldn't be passed through reconciliation or could be touted as a historic corrective to the extreme polarisation.

Last week, he seemed to achieve a major breakthrough. Ten senators, five Republicans and five Democrats, agreed on a $1.2 trillion, eight-year infrastructure spending programme.

It would not give Democrats everything they sought, especially on family issues like child and elder care, but still is a vast initiative.

It was not clear if five additional Republicans might vote for the bill, but the president appeared vindicated: bipartisan agreements are still possible.

Then Mr Biden made his first major presidential misstep. He declared he would not sign such a bill unless there was accompanying legislation for more spending passed by Democrats alone.

Republicans howled in outrage, though they knew all along Democrats would certainly seek additional spending through reconciliation. Mr Biden had to clarify that he would indeed simply sign such a bill if it passed.

But the uproar will complicate efforts to find five more Republican votes. It is possible Mr Biden was deliberately trying to signal to the Democratic left that their concerns were not being abandoned. Either way, linking the bills produced nothing but a new set of problems.

Yet it was never clear if five or any more Republicans are willing to support any major initiative that could aid Mr Biden.

A parallel dynamic on bipartisanship is developing over voting rights.

Republicans unanimously blocked wide-ranging legislation proposed by Democrats.

Mr Manchin, who said he would not support that bill, has proposed a more modest package that nonetheless includes many important protections. Crucially, it was endorsed by some of the most influential voting-rights activists, most notably the beloved Stacey Abrams of Georgia.

Her intervention united Democrats and will therefore test Republican intentions on Mr Manchin’s proposed compromise.

Republicans face two upcoming tests of whether they are willing to pass any momentous legislation at all with a Democratic president: the existing infrastructure agreement and a scaled-down voting protection bill.

If Republicans refuse to co-operate on both in coming weeks, Mr Biden's domestic agenda will be damaged and deal-making efforts crushed, although Democrats will pass what they can on infrastructure through the reconciliation process.

The current 7 per cent economic growth rate might ensure that Democrats survive the midterms anyway.

But at some point, championing bipartisanship in the face of unbending opposition on all aspects of governance by the other side becomes unworkable and indefensible.

If Republicans are determined to filibuster everything they possibly can, including urgently needed infrastructure repair, Mr Manchin and Ms Sinema will come under heavy pressure to reconsider amending, if not abolishing, Senate filibuster rules.

The filibuster was traditionally difficult and costly, and therefore rare. Only in the last 20 years has it become a routine and effortless "kill switch" for most legislation.

The filibuster is a powerful weapon for Senate Republicans. But if they overplay their hand, they could force even the filibuster’s strongest Democratic supporters to conclude it is time to restore the traditional balance.

Hussein Ibish is a senior resident scholar at the Arab Gulf States ­Institute and a US affairs columnist for The National

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. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

'Peninsula'

Stars: Gang Dong-won, Lee Jung-hyun, Lee Ra

Director: ​Yeon Sang-ho

Rating: 2/5

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

In numbers

Number of Chinese tourists coming to UAE in 2017 was... 1.3m

Alibaba’s new ‘Tech Town’  in Dubai is worth... $600m

China’s investment in the MIddle East in 2016 was... $29.5bn

The world’s most valuable start-up in 2018, TikTok, is valued at... $75bn

Boost to the UAE economy of 5G connectivity will be... $269bn 

Frankenstein in Baghdad
Ahmed Saadawi
​​​​​​​Penguin Press

The biog

Favourite book: Homegoing by Yaa Gyasi

Favourite holiday destination: Spain

Favourite film: Bohemian Rhapsody

Favourite place to visit in the UAE: The beach or Satwa

Children: Stepdaughter Tyler 27, daughter Quito 22 and son Dali 19

Pros%20and%20cons%20of%20BNPL
%3Cp%3E%3Cstrong%3EPros%3C%2Fstrong%3E%0D%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3EEasy%20to%20use%20and%20require%20less%20rigorous%20credit%20checks%20than%20traditional%20credit%20options%0D%3C%2Fli%3E%0A%3Cli%3EOffers%20the%20ability%20to%20spread%20the%20cost%20of%20purchases%20over%20time%2C%20often%20interest-free%0D%3C%2Fli%3E%0A%3Cli%3EConvenient%20and%20can%20be%20integrated%20directly%20into%20the%20checkout%20process%2C%20useful%20for%20online%20shopping%0D%3C%2Fli%3E%0A%3Cli%3EHelps%20facilitate%20cash%20flow%20planning%20when%20used%20wisely%0D%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cstrong%3ECons%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3EThe%20ease%20of%20making%20purchases%20can%20lead%20to%20overspending%20and%20accumulation%20of%20debt%0D%3C%2Fli%3E%0A%3Cli%3EMissing%20payments%20can%20result%20in%20hefty%20fees%20and%2C%20in%20some%20cases%2C%20high%20interest%20rates%20after%20an%20initial%20interest-free%20period%0D%3C%2Fli%3E%0A%3Cli%3EFailure%20to%20make%20payments%20can%20impact%20credit%20score%20negatively%0D%3C%2Fli%3E%0A%3Cli%3ERefunds%20can%20be%20complicated%20and%20delayed%0D%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cem%3ECourtesy%3A%20Carol%20Glynn%3C%2Fem%3E%3C%2Fp%3E%0A
RESULT

Liverpool 4 Southampton 0
Jota (2', 32')
Thiago (37')
Van Dijk (52')

Man of the match: Diogo Jota (Liverpool)

Ain Dubai in numbers

126: The length in metres of the legs supporting the structure

1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch

16 A380 Airbuses: The equivalent weight of the wheel rim.

9,000 tonnes: The amount of steel used to construct the project.

5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place

192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.

UAE currency: the story behind the money in your pockets
The specs: 2018 Nissan 370Z Nismo

The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
​​​​​​​Fuel consumption, combined: 10.5L / 100km

Results

4.30pm Jebel Jais – Maiden (PA) Dh60,000 (Turf) 1,000m; Winner: MM Al Balqaa, Bernardo Pinheiro (jockey), Qaiss Aboud (trainer)

5pm: Jabel Faya – Maiden (PA) Dh60,000 (T) 1,000m; Winner: AF Rasam, Tadhg O’Shea, Ernst Oertel

5.30pm: Al Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 2,200m; Winner: AF Mukhrej, Tadhg O’Shea, Ernst Oertel

6pm: The President’s Cup Prep – Conditions (PA) Dh100,000 (T) 2,200m; Winner: Mujeeb, Richard Mullen, Salem Al Ketbi

6.30pm: Abu Dhabi Equestrian Club – Prestige (PA) Dh125,000 (T) 1,600m; Winner: Jawal Al Reef, Antonio Fresu, Abubakar Daud

7pm: Al Ruwais – Group 3 (PA) Dh300,000 (T) 1,200m; Winner: Ashton Tourettes, Pat Dobbs, Ibrahim Aseel

7.30pm: Jebel Hafeet – Maiden (TB) Dh80,000 (T) 1,400m; Winner: Nibraas, Richard Mullen, Nicholas Bachalard

Leaderboard

15 under: Paul Casey (ENG)

-14: Robert MacIntyre (SCO)

-13 Brandon Stone (SA)

-10 Laurie Canter (ENG) , Sergio Garcia (ESP)

-9 Kalle Samooja (FIN)

-8 Thomas Detry (BEL), Justin Harding (SA), Justin Rose (ENG)

'Nightmare Alley'

Director:Guillermo del Toro

Stars:Bradley Cooper, Cate Blanchett, Rooney Mara

Rating: 3/5