It’s not 100 days yet, and the administration of US President Joe Biden has already passed the most ambitious legislation in more than a decade. The huge spending package that has now passed both houses of Congress is much more than a Covid-19 relief package. It’s a major healthcare bill, a childcare bill and a state-government financial stabilisation bill. Almost all families with children will receive thousands of dollars in federal assistance, even if neither parent lost a job in the pandemic. If Mr Biden retired right now, he would already have met a full term’s worth of Democratic Party priorities.
But, of course, Mr Biden is not retiring now. He is turning to his next priorities – and those are likely to be more contentious, not only for the opposition Republican Party, but also within his own coalition of Democrats.
The exact order of what comes next will depend on Democratic leadership in the two legislative houses – the House of Representatives and the Senate. They are looking at several issues, and all of them matter not only for the US, but also the global economy.
Mr Biden has already announced principles for a big immigration bill. He wants to offer some kind of legal status in the US to people who entered the country illegally, and to make it easier and faster to gain asylum.
Mr Biden also wants to enact a big infrastructure programme: not only the traditional roads, bridges and airports spending, but also the acceleration of the drive to a post-petroleum economy. In a video interview on March 9, White House chief of staff Ron Klain pledged that an infrastructure bill would fund hundreds of thousands of new charging stations for electric vehicles.
Biden has already passed the most ambitious legislation in more than a decade
Meanwhile, Democrats in Congress are itching to challenge China on trade and manufacturing. The Senate majority leader, Chuck Schumer, wants the party’s very next priority to be a bill that would support US supply chains and assert US control over global 5G mobile networks.
Looming behind all of these proposed legislative items is the existential challenge of climate change. Mr Biden rejoined the Paris climate accords at the very beginning of his administration. Now he has to devise ways to honour his commitments.
Those big four commitments – immigration, infrastructure, competing with China and tackling climate change – all come attended by risks and costs. Mr Biden’s early signals on immigration have already summoned a huge flow of unauthorised migration to the US: 100,000 people crossed the border with Mexico illegally in February, followed by almost 5,000 a day thus far in the month of March.
While liberal voters in pro-Democrat states generally welcome more immigration, and are unfazed even by unauthorised immigration, the prospect of a huge, unauthorised flow is very upsetting to swing voters along the border – very much including Hispanic voters. The Rio Grande Valley along the border with Mexico is majority Hispanic. Democratic presidential candidate Hillary Clinton won the valley in the 2016 election by massive, double-digit margins. But in 2020, Donald Trump’s tough-on-illegal-immigration policies cut the Democratic margin in the area dramatically. Zapata County, just south of the Texan city of Laredo, is 85 per cent Hispanic, and Trump won it outright – the first Republican to win the county since the aftermath of the 19th-century Civil War. In the state of Arizona, which is split between Democrat and Republican supporters, the newly elected Democrat senator Mark Kelly faces his first re-election campaign in 2022. Uncontrolled unauthorised migration into the state could cost his party that seat – and with it, control of the Senate.
Mr Biden’s infrastructure programme is already behind schedule. It was originally supposed to be second in line after Covid-19 relief. But the Covid-19 bill has been signed into law now – and there is no infrastructure bill in sight. Cost issues are a worry, but an even bigger problem is the argument over who gets what, and how much. An infrastructure bill is also more vulnerable to Republican obstruction in Congress – unless Mr Biden can find ways to rent the votes of 10 Republican senators. Despite four years of promising, his predecessor Mr Trump never managed even to write an infrastructure bill, never mind bring one to a vote. Can Mr Biden do better? The clock is ticking.
If not, the anti-China bill could displace the infrastructure bill. Mr Trump started trade wars against half the world. Mr Biden has suspended the Trump administration’s punitive tariffs upon the UK, but many Democrats are in no hurry to end Mr Trump’s trade quarrels with China. During the 2020 campaign, Mr Biden repeatedly vowed to insert “Buy American” provisions into all government procurement – upsetting not only close trading partners like Canada and Mexico, but raising shadows over all world trade. Since the global financial crisis of 2008-2009, global trade has grown more slowly than world economic output. Economists have called the 2010s the era of “slowbalisation”. Mr Biden seems in no hurry to change this, to the cost of the whole planet.
Even costlier to the planet is inaction on climate change. Over the past decade, the US has moved sharply away from burning coal. By 2022, the US will burn half as much coal as in the peak year, 2007. There are early indicators that 2018 will prove to have been the peak year for US consumption of crude oil. Mr Biden wants to hurry that transition along. But how? A cap-and-trade scheme collapsed in the Democratic-controlled Congress the last time a Democrat, Barack Obama, was in the White House. Carbon taxes are obvious targets for Republican attack. Encouraging and subsidising new green technology does not get the job done anything like fast enough. Yet if Mr Biden does nothing, he’ll rip apart a Democratic party in which the base increasingly sees the environment as the important issue once Covid-19 is overcome.
William Ewart Gladstone, who dominated 19th-century British politics into his 80s, was once mocked by a political opponent as “an old man in a hurry”. That opponent was onto something. The older Gladstone got, the faster he moved. Something similar seems to be happening with President Joe Biden, another old man in a hurry. He can count on control of Congress for only two years. He’s already crammed through a lot. More, more, more seems on the way.
David Frum is a writer at the Atlantic who was speechwriter and special assistant to former US president George W Bush
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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
The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
The UN General Assembly President in quotes:
YEMEN: “The developments we have seen are promising. We really hope that the parties are going to respect the agreed ceasefire. I think that the sense of really having the political will to have a peace process is vital. There is a little bit of hope and the role that the UN has played is very important.”
PALESTINE: “There is no easy fix. We need to find the political will and comply with the resolutions that we have agreed upon.”
OMAN: “It is a very important country in our system. They have a very important role to play in terms of the balance and peace process of that particular part of the world, in that their position is neutral. That is why it is very important to have a dialogue with the Omani authorities.”
REFORM OF THE SECURITY COUNCIL: “This is complicated and it requires time. It is dependent on the effort that members want to put into the process. It is a process that has been going on for 25 years. That process is slow but the issue is huge. I really hope we will see some progress during my tenure.”
British Grand Prix free practice times in the third and final session at Silverstone on Saturday (top five):
1. Lewis Hamilton (GBR/Mercedes) 1:28.063 (18 laps)
2. Sebastian Vettel (GER/Ferrari) 1:28.095 (14)
3. Valtteri Bottas (FIN/Mercedes) 1:28.137 (20)
4. Kimi Raikkonen (FIN/Ferrari) 1:28.732 (15)
5. Nico Hulkenberg (GER/Renault) 1:29.480 (14)
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Name: Abeer Al Bah
Born: 1972
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Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
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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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Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
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Date started: December 24, 2018
Founders: Omer Gurel, chief executive and co-founder and Edebali Sener, co-founder and chief technology officer
Based: Dubai Media City
Number of employees: 42 (34 in Dubai and a tech team of eight in Ankara, Turkey)
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Funding: Series A funding of $2.5m with Series B plans for May 2020