With his ceaseless boasting, former president Donald Trump vowed to be a transformative American leader. Yet he proved more a symptom of disruption than an agent of change. Instead, it is his highly focused and low-key successor, Joe Biden, who is already well under way with the most ambitious transformative agenda in half a century.
Its huge size isn’t terribly unusual, but the allocation is genuinely revolutionary.
Mr Trump's 2017 tax cut cost about $2tn over 10 years but was heavily focused on benefiting the wealthy and corporations.
Barack Obama oversaw at least two major spending bills, the first targeting recovery from the economic meltdown in 2008. George W Bush, too, oversaw major spending for that recovery, his various wars and so on.
What’s unheard of is not the amount but that the spending is focused clearly at aiding disadvantaged Americans, including direct, one-time payments, extended unemployment benefits and, especially, measures targeting childhood poverty.
Since the mid-1960s, there hasn't been any comparable effort to mobilise the power of government to assist working people and, especially, the poor. Republican critics grumble that this is Venezuela-style "socialism". While it's obviously nothing of the kind, it is clearly a step towards redistributing wealth in a society in which income stratification has become grotesquely unfair.
The changes will be truly significant.
The poorest fifth of households will see 20 per cent increases in income. A Washington-based think tank the Urban Institute estimates that just four provisions of the bill will reduce the national poverty rate by fully one third.
And the attack on poverty will be most beneficial to the neediest communities, with African-American poverty being reduced by 42 per cent, Hispanic by 39 per cent and 34 per cent for poor whites.
Perhaps the most far-reaching change is a new refundable child tax credit, which for the poorest will come in the form of monthly cash transfers, at a rate of $250 for each child over five and $300 for those younger.
No family can live off of those amounts, but they are clearly a major step towards a guaranteed minimum income, at least for children. And unlike with past support for children, these payments will not be tied to work requirements or other conditions.
Protesters on horseback rally against the death in Minneapolis police custody of George Floyd, through central Houston, Texas. Reuters
A broken Statue of Liberty figure is seen between glass shatters outside a looted souvenir shop after a night of protest against the death of an African-American man George Floyd in Minneapolis in Manhattan in New York City. AFP
People, who gathered in protest against the death of George Floyd, peacefully march to the White House in Washington DC. EPA
Philonise Floyd, brother of George Floyd, who died in Minneapolis police custody, is surrounded by family members as he speaks at a protest rally against his brother’s death, in Houston, Texas. Reuters
George Floyd's daughter, Gianna Floyd, 6, is seen during a press conference at Minneapolis City Hall following the death in Minneapolis police custody of George Floyd in Minneapolis, Minnesota. Reuters
A Somali-American couple, alongside protesters calling for justice for the death of George Floyd, waits after curfew outside the Cup Foods in Minneapolis, Minnesota. AFP
Thousands of protesters turn out for a sit-in at the State capitol, more than a week after George Floyd's death while under arrest, in St Paul, Minnesota. EPA
A police officer kneels during a protest against the death in Minneapolis police custody of George Floyd, outside LAPD headquarters in Los Angeles, California. Reuters
Protesters during a 'Black Lives Matter' demonstration in New York City. AFP
A protester holds a placard during a demonstration after French medical experts exonerated the gendarmes involved in the arrest of Adama Traore, a young black man who died in police custody in 2016, outside the 'Tribunal de Paris' courthouse in Paris. AFP
Turkish leftist demonstrators clash with police at Kadikoy in Istanbul, as leftist groups gather in support of US protesters against the death of George Floyd in Minneapolis police custody, and against police violence in Turkey. AFP
A woman stands in front of Police officers, in downtown Las Vegas, as they take part in a 'Black lives matter' rally in response to the recent death of George Floyd, an unarmed black man who died in police custody. AFP
People take part in a protest against the death in Minneapolis police custody of George Floyd, at Trump International Hotel in New York. Reuters
A demonstrator holds a sign during a rally following the death in Minneapolis police custody of George Floyd, in Boston, Massachusetts. Reuters
A demonstrator reacts during a rally following the death in Minneapolis police custody of George Floyd, in Boston, Massachusetts. Reuters
Canadian Prime Minister Justin Trudeau responds to a question on racism during a news conference outside Rideau Cottage in Ottawa. Mr Trudeau said Canadians were watching what’s unfolding in the US with 'horror and consternation'. AP
Members of the National Guard take a knee as people protest against the death of George Floyd in Minneapolis police custody, in Hollywood, Califronia. EPA
Health insurance subsidies are greatly increased. There’s even a hint towards reparations for slavery, with $4 billion set aside to help black farmers.
When the dust settles on such spending, especially if measures such as the child tax credit become permanent, as Democrats confidently predict, the socio-economic landscape of the US will have been nudged in favour of the neediest people, particularly children.
It’s already clear that the role of the US government in shaping the lives of its citizens has been revolutionised.
The Republican mantra that tax cuts pay for themselves has been tested many times and irrefutably disproven. Democrats are now going to try to demonstrate that, over time, it is well-targeted social and economic spending that really can pay for itself.
As whoever authors the pseudonymous “James Medlock” Twitter account brilliantly phrased it: “The era of ‘the era of big government is over’ is over.”
That refers to a phrase used by former president Bill Clinton when he effectively eliminated traditional welfare in the 1990s.
But the idea is far older.
Since at least Ronald Reagan’s election in 1980, Republicans have been united around the claim that “government is not the solution to our problem, government is the problem". Even many Democrats eventually came to share such suspicions.
Several factors have reversed this process, reviving the view, including among many Republicans, that government is a necessary force in shaping social and economic conditions.
Underlying the antipathy to social spending was a racist conviction among many whites that too much help was being given, at their expense, to presumptively unworthy citizens, particularly African Americans and Hispanics.
But in recent years, problems that used to plague minority-dominated inner cities, particularly chronic unemployment and the despair, alcoholism and addiction, and crime this produces, have migrated into white-majority rural areas while many cities are thriving.
The coronavirus pandemic also reminded everyone that there's no alternative to federal authorities when coping with huge disasters.
Suddenly the government doesn’t look so bad to many Republicans.
Mr Trump also played a crucial role. He isn’t and never was a conservative. In fact, he was a fairly liberal Democrat (except on racial issues) for most of his life. As a Republican leader, he championed a populist agenda that in theory promised to use the government to deliver tangible benefits to ordinary voters.
Yet working with Republican Senate leader Mitch McConnell and other conservatives, his only real domestic accomplishment was the tax cut for the rich. But he never stopped boasting about all the marvellous programmes he was just about to secure for working people.
Instead of debating the Covid-19 relief bill, Republicans raged impotently about non-issues, including discontinued Dr Seuss children’s books. AFP
His constituency was already primed to dump the Reagan-era allergy to government programmes. But Mr Trump delivered a rhetorical framework and political legitimacy.
So, the Biden spending bill is popular among Republicans, especially the less affluent.
That's why Republicans in Congress, although none of them voted for the bill, and right-wing commentators put up no serious fight against the legislation. Instead, they raged impotently about preposterous non-issues – discontinued Dr Seuss children's books and re-branded Mr Potato Head toys – completely unrelated to governance.
Four years ago, I wrote in these pages that Mr Trump had a remarkable opportunity to secure a lasting US political realignment by combining his economic nationalism with major government spending programmes, particularly on infrastructure, designed to create large numbers of good working-class jobs. His inability to do so undoubtedly contributed to his electoral defeat.
Frantic Republican claims to now be the party of the working-class ring desperately hollow, especially as Mr Biden has just taken a huge step towards such a realignment and embraced a lot of Mr Trump’s economic nationalism.
If he can maintain party unity, reform or repeal the Senate filibuster, or gain significant Republican co-operation in Congress, Mr Biden could become one of the most consequential presidents in US history.
Hussein Ibish is a senior resident scholar at the Arab Gulf States Institute and a US affairs columnist for The National
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
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
The Bloomberg Billionaire Index in full
1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion
6pm: Al Wasl Plaza – Handicap (TB) Dh95,000 (T) 1,200m; Winner: Jadwal, Dane O’Neill, Doug Watson
Company profile
Company: Eighty6
Date started: October 2021
Founders: Abdul Kader Saadi and Anwar Nusseibeh
Based: Dubai, UAE
Sector: Hospitality
Size: 25 employees
Funding stage: Pre-series A
Investment: $1 million
Investors: Seed funding, angel investors
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:
1. Make sure you make your payments on time;
2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;
3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.