US President Joe Biden delivers a speech on infrastructure spending in Pittsburgh. Getting Congressional approval will prove difficult, although not impossible. AP Photo
US President Joe Biden delivers a speech on infrastructure spending in Pittsburgh. Getting Congressional approval will prove difficult, although not impossible. AP Photo
US President Joe Biden delivers a speech on infrastructure spending in Pittsburgh. Getting Congressional approval will prove difficult, although not impossible. AP Photo
US President Joe Biden delivers a speech on infrastructure spending in Pittsburgh. Getting Congressional approval will prove difficult, although not impossible. AP Photo

An ambitious Biden's margin for error or bad luck is close to zero


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US President Joe Biden has breathtaking ambitions. The $1.9 trillion pandemic relief bill is the most far-reaching legislation in 50 years to redirect assets to the poorest Americans, especially children. And he intends to go far beyond that spectacular start.

He is now promoting a massive $2tn infrastructure and climate change package. Securing that means operating at the Franklin Roosevelt-level of historic significance.

Since the 1960s, Democrats mainly emphasised social spending. Republicans have mostly promoted the interests of corporations and the wealthy. Both robustly fund the military and serve the special interests that support them.

Suddenly here is a major federal initiative for the country as a whole, the basic infrastructure of the US.

It goes far beyond traditional definitions of "infrastructure", although it does provide considerable spending on roads and bridges, railways and public transportation, schools and affordable housing. Yet there are also vast investments in home and community care, universal high-speed broadband, the power grid, cleaner energy and electric vehicles.

Critics see a liberal laundry-list grab-bag, especially since the plan will supposedly be primarily funded through tax increases on corporations and the wealthy, effectively reversing former US president Donald Trump's 2017 tax cut. It would be another huge step in rearranging social and economic relations in the interests of ordinary people at the expense of corporations and the wealthy. And it would transform significant aspects of the living conditions of many Americans.

Passing anything like this will be extremely difficult given the Democrats' razor-thin majorities in the US Congress.

Eventually, Mr Biden should be able to win the support of the House of Representatives, despite objections from several New York-area representatives who want to lift the cap on deductions for state and local taxes imposed by the Trump tax bill. The Senate, however, is an entirely different matter. And Democratic hopes of passing any such bill this year begin with a little-known official called the Senate "parliamentarian".

The pandemic bill, like Mr Trump's tax cut, was adopted by a simple majority under “budget reconciliation” – an unwieldy workaround to bypass the 100-member Senate's otherwise inflexible 60-vote supermajority to allow legislation to move forward. This exception to the filibuster only applies to spending proposals, meaning that all or most of the infrastructure legislation will probably, but not certainly, qualify.

The main complication is that reconciliation, being supposedly a budget procedure, has never been used twice in the same year. Whether it can will be ruled on by Elizabeth McDonough, the Senate’s professional parliamentarian who referees issues of parliamentary procedure and the correct application of Senate rules.

Ms McDonough has already shown herself willing to thwart the re-empowered Democrats by correctly ruling that a minimum wage increase that had been intended for the pandemic relief bill exceeded the parameters of what is allowed under reconciliation and therefore had to be removed.

A simple Senate majority can always overrule the parliamentarian, but that’s rare and arguably improper. Ms McDonough is a fair-minded arbiter, and changing the rules – not overruling her impartial interpretations – is the appropriate response to an unwelcome ruling.

Joe Biden has an ambitious agenda but the US Senate will need convincing. AP Photo
Joe Biden has an ambitious agenda but the US Senate will need convincing. AP Photo

If she finds that the infrastructure bill can move forward despite reconciliation already having been used for pandemic relief, the really difficult problems commence.

Unless Mr Biden can win some Republican support, which seems exceedingly unlikely on this or any other significant legislation, he will need to hold every single Democratic vote in the 50-50 split Senate, with Vice President Kamala Harris breaking the tie.

Some conservative Democratic senators from largely Republican-leaning states, especially Joe Manchin of West Virginia and Kyrsten Sinema of Arizona, will find supporting such an expansive spending programme politically risky. Moreover, for the same reason they strongly oppose filibuster reform – to preserve their own centrality in Senate deliberations under current circumstances – they may be tempted to either greatly dilute the proposed legislation or simply oppose it altogether.

Mr Biden's ambitions are at least as grand as those of Lyndon Johnson in the early 1960s. But he will have to somehow channel Johnson’s legendary parliamentary skills and powers of persuasion to prevail.

Prospects are even dimmer for another potentially historic bill, this one on securing voting rights, which would require reforming or bypassing the filibuster. That isn't necessary for the infrastructure spending package. But the same block of all 50 Democratic Senate votes plus Ms Harris' tiebreaker will probably be needed to secure either.

Franklin Roosevelt, the former US president, carried out massive infrastructure spending in the 1930s. AP Photo
Franklin Roosevelt, the former US president, carried out massive infrastructure spending in the 1930s. AP Photo

Yet the pandemic relief, infrastructure and voting rights acts – if all three passed – would almost certainly make Mr Biden a transformative president, probably beyond even Johnson's legacy and closer to Roosevelt's.

Such an achievement would be all the more remarkable because it can only be done by keeping the fractious and still ideologically diverse Democratic Party unanimously united behind extraordinarily bold spending plans. And in the unfortunate event any one of the several elderly Democratic senators passes away, his task would become even more daunting and perhaps impossible.

So his margin for error or bad luck is close to zero.

Yet Republicans lack a coherent rebuttal other than budget concerns. Since they evinced no interest in fiscal discipline during the Trump administration, that will be highly unconvincing for anyone paying attention to their stances. And a major infrastructure project would probably be broadly popular, including among Republican voters.

Donald Trump did not carry out infrastructure spending despite talking about it extensively. Bloomberg
Donald Trump did not carry out infrastructure spending despite talking about it extensively. Bloomberg

Such spending would generate huge numbers of good working-class jobs, which Mr Trump always promised but never really delivered beyond what the economy was already in the process of achieving. His endless but meaningless "infrastructure weeks" became a national joke.

If Mr Biden can hold the Democrats together, pass transformative legislation while defeating the pandemic, and avoid sustained, high inflation (the obvious danger of such huge expenditures), the Democrats would be in an extraordinarily strong position.

Typically, a new president's party loses congressional seats in the first midterm, and Mr Biden cannot afford any losses in either the House or the Senate next year. But the historic exceptions have always come during times of crisis, and no one doubts there is one now.

If Mr Biden shows that sweeping government actions can solve big problems, the existing Republican playbook may be rendered obsolete. They will finally have to abandon the Donald Trump personality cult and categorically opposing almost everything, and seriously reengage with policy and governance.

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

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
RESULTS

Women:

55kg brown-black belt: Amal Amjahid (BEL) bt Amanda Monteiro (BRA) via choke
62kg brown-black belt: Bianca Basilio (BRA) bt Ffion Davies (GBR) via referee’s decision (0-0, 2-2 adv)
70kg brown-black belt: Ana Carolina Vieira (BRA) bt Jessica Swanson (USA), 9-0
90kg brown-black belt: Angelica Galvao (USA) bt Marta Szarecka (POL) 8-2

Men:

62kg black belt: Joao Miyao (BRA) bt Wan Ki-chae (KOR), 7-2
69kg black belt: Paulo Miyao (BRA) bt Gianni Grippo (USA), 2-2 (1-0 adv)
77kg black belt: Espen Mathiesen (NOR) bt Jake Mackenzie (CAN)
85kg black belt: Isaque Braz (BRA) bt Faisal Al Ketbi (UAE), 2-0
94kg black belt: Felipe Pena (BRA) bt Adam Wardzinski (POL), 4-0
110kg black belt final: Erberth Santos (BRA) bt Lucio Rodrigues (GBR) via rear naked choke

RESULTS

2pm: Maiden Dh 60,000 (Dirt) 1,400m. Winner: Masaali, Pat Dobbs (jockey), Doug Watson (trainer).

2.30pm: Handicap Dh 76,000 (D) 1,400m. Winner: Almoreb, Dane O’Neill, Ali Rashid Al Raihe.

3pm: Handicap Dh 64,000 (D) 1,200m. Winner: Imprison, Fabrice Veron, Rashed Bouresly.

3.30pm: Shadwell Farm Conditions Dh 100,000 (D) 1,000m. Winner: Raahy, Adrie de Vries, Jaber Ramadhan.

4pm: Maiden Dh 60,000 (D) 1,000m. Winner: Cross The Ocean, Richard Mullen, Satish Seemar.

4.30pm: Handicap 64,000 (D) 1,950m. Winner: Sa’Ada, Fernando Jara, Ahmad bin Harmash.

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
UAE SQUAD

Khalid Essa, Ali Khaseif, Fahad Al Dhanhani, Adel Al Hosani, Bandar Al Ahbabi, Mohammad Barghash, Salem Rashid, Khalifa Al Hammadi, Shaheen Abdulrahman, Hassan Al Mahrami, Walid Abbas, Mahmoud Khamis, Yousef Jaber, Majed Sorour, Majed Hassan, Ali Salmeen, Abdullah Ramadan, Abdullah Al Naqbi, Khalil Al Hammadi, Fabio De Lima, Khalfan Mubarak, Tahnoon Al Zaabi, Ali Saleh, Caio Canedo, Ali Mabkhout, Sebastian Tagliabue, Zayed Al Ameri

Starring: Jamie Foxx, Angela Bassett, Tina Fey

Directed by: Pete Doctor

Rating: 4 stars

SPEC%20SHEET%3A%20APPLE%20IPAD%20(2022)
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COMPANY%20PROFILE
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MATCH INFO

Uefa Champions League semi-final, first leg

Barcelona v Liverpool, Wednesday, 11pm (UAE).

Second leg

Liverpool v Barcelona, Tuesday, May 7, 11pm

Games on BeIN Sports

Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 

The Kites

Romain Gary

Penguin Modern Classics

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

Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

 

 

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US tops drug cost charts

The study of 13 essential drugs showed costs in the United States were about 300 per cent higher than the global average, followed by Germany at 126 per cent and 122 per cent in the UAE.

Thailand, Kenya and Malaysia were rated as nations with the lowest costs, about 90 per cent cheaper.

In the case of insulin, diabetic patients in the US paid five and a half times the global average, while in the UAE the costs are about 50 per cent higher than the median price of branded and generic drugs.

Some of the costliest drugs worldwide include Lipitor for high cholesterol. 

The study’s price index placed the US at an exorbitant 2,170 per cent higher for Lipitor than the average global price and the UAE at the eighth spot globally with costs 252 per cent higher.

High blood pressure medication Zestril was also more than 2,680 per cent higher in the US and the UAE price was 187 per cent higher than the global price.

MATCH INFO

Crawley Town 3 (Tsaroulla 50', Nadesan 53', Tunnicliffe 70')

Leeds United 0 

All the Money in the World

Director: Ridley Scott

Starring: Charlie Plummer, Mark Wahlberg, Michelle Williams, Christopher Plummer

Four stars