The American and French Revolutions are modern history’s most famous examples of popular resistance to paying taxes. But the pitched rhetorical battles over taxation currently being waged in three different countries are nothing like those 18th century transformative struggles.
When Britain’s 13 American colonies rose up in the 1770s, it was to protest against taxation without representation. When ordinary Frenchmen took to the streets barely a decade later, they were challenging the inequity of a tax system that largely exempt the clergy and nobility. In contrast, the ongoing political wars against tax changes in the US, Colombia and Spain threaten to arrest progressive change and could actually entrench inequality. In some ways, these examples of tax resistance are the counter-revolution.
Consider Spain, where the May 4 Madrid regional election delivered a resounding victory – albeit just short of an absolute majority – to Isabel Diaz Ayuso and her conservative People's Party. Ms Diaz Ayuso, a feisty 42-year-old who promises that Socialist Party prime minister Pedro Sanchez's days are numbered, ran on a platform of "libertad" or freedom. In the way she presented it, freedom was to be understood almost exclusively as light taxes, and for bars and shops to remain open during the pandemic. Her message appears to have resonated deeply, not just in the conservative neighbourhoods long loyal to her party, but across a working class belt around the Spanish capital. Grateful members of Madrid's hospitality industry, part of the city's sizeable services sector, even named a pizza, a beverage and a potato dish after her.
The triumph of Ms Diaz Ayuso's brand of street-fighting conservatism has raised the spirits of Spain's fragmented right, as well as its counterparts in Europe. Matteo Salvini, leader of Italy's far right League, for instance, rushed to congratulate Ms Diaz Ayuso and to claim a deep affinity with her party. There is obvious interest in replicating her political formula, which capitalises on coronavirus restrictions fatigue and makes a virtue of impoverishing the state, all in the name of individual liberty.
Isabel Diaz Ayuso upon arrival at her party's headquarters in Madrid, Spain, May 5, a day after her victory in the Madrid elections. EPA
But the low-tax plan championed by Ms Diaz Ayuso sits oddly with Europe’s declared social agenda, one that was restated just last week at the Social Summit in Porto, Portugal. In Porto, leaders of the EU member states agreed to address the heightened inequality and poverty induced by the pandemic, as well as to provide enhanced social protection to their people. And they promised to move from aspiration to implementation of the proclaimed “pillar” of social rights agreed in Gothenburg, Sweden four years ago.
Taxes have always been a contentious issue
But how does one achieve Brussel’s new quantitative social targets – raising the employment rate of 20- to 64-year-olds to 78 per cent, ensuring 60 per cent of adults engage in some skills training every year and reducing by 15 million the number of Europeans at risk of poverty and social exclusion – without raising resources for the state?
As one of the few regional leaders in western Europe to fight against supposedly excessive coronavirus curbs as well to resist the state’s responsibility for the pandemic-affected populace, Ms Diaz Ayuso’s stance appears closer to that of the Republican Party governors of Texas, Florida and South Dakota in the US.
Those Republican governors are in line with their party’s broader opposition to raising taxes to fund some of the biggest pieces of president Joe Biden’s domestic agenda, the American Jobs Plan and the American Families Plan. The Biden administration’s proposed tax rises for corporations and the wealthiest Americans would pay for government spending on infrastructure, energy, education, child care and to support low-income families. But Republican senate minority leader Mitch McConnell has said that no lawmaker from his party will “revisit” the 2017 tax cuts that became law under the previous Republican administration.
Much of the Republican rhetoric hides a basic fact about Mr Biden’s plan. Historically speaking, the proposed tax increases aren’t particularly high and the wealthiest Americans would still only pay tax at rates that are lower than in the 1940s, 1950s and 1960s. Sharon Parrott, president of the progressive think tank, Center on Budget and Policy Priorities, recently likened the politics of tax cuts to an act of “worship”. Tax cuts, she added, have not only shrunk America’s revenues but its ambitions and “the price of not raising revenues is ignoring festering problems.”
The third battle over taxes is being fought in Colombia. Bloody street clashes have forced president Ivan Duque to withdraw a plan to raise taxes in order to address rising poverty caused by the pandemic, fund social programmes and provide cash transfers to the neediest. The Colombian attempt to widen the income tax net and remove value added tax exemptions would have safeguarded Colombia’s investment-grade credit rating. The proposed legislation, praised by tax experts, had been closely watched as Colombia was one of the first major emerging markets to try and bring its ballooning debt burden back under control.
Though Mr Duque had promised higher tax rates would only target those most able to pay, that reassuring message didn’t seem to get through to the people. Instead, the protesters have confusingly made an alternative and rather expensive demand – the introduction of a guaranteed minimum income – without higher taxes. With a general election due in Colombia next year, taxation has become a politically fraught issue and Mr Duque and his proposed legislation have taken the hit.
Taxes have always been a contentious issue. Opinions range across the spectrum, starting with the idea that taxation is legalised robbery and ending at the benign view of tax as a way for citizens to pay their just dues. The reality is that freedom must be balanced by responsibility, and that includes the payment of reasonable taxes.
Rashmee Roshan Lall is a columnist for The National
Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
How being social media savvy can improve your well being
Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.
As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.
Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.
Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.
Torrena said that “most people believe that dieting and keeping fit is boring”.
However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.
“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.
People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Monster
Directed by: Anthony Mandler
Starring: Kelvin Harrison Jr., John David Washington
Starring: Jeremy Allen White, Odessa Young, Jeremy Strong
Rating: 4/5
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany - At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people - Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed - Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest - He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
Results
2-15pm: Commercial Bank Of Dubai – Conditions (TB) Dh100,000 (Dirt) 1,400m; Winner: Al Habash, Patrick Cosgrave (jockey), Bhupat Seemar (trainer)
2.45pm: Al Shafar Investment – Handicap (TB) Dh80,000 (D) 1,200m; Winner: Day Approach, Ray Dawson, Ahmad bin Harmash
3.15pm: Dubai Real estate Centre – Handicap (TB) Dh80,000 (D) 1,600m; Winner: Celtic Prince, Richard Mullen, Rashed Bouresly
3.45pm: Jebel Ali Sprint by ARM Holding – Listed (TB) Dh500,000 (D) 1,000m; Winner: Khuzaam, Pat Dobbs, Doug Watson
4.15pm: Shadwell – Conditions (TB) Dh100,000 (D) 1,600m; Winner: Tenbury Wells, Royston Ffrench, Salem bin Ghadayer
4.45pm: Jebel Ali Stakes by ARM Holding – Listed (TB) Dh500,000 (D) 1,950m; Winner: Lost Eden, Andrea Atzeni, Doug Watson
5.15pm: Jebel Ali Racecourse – Handicap (TB) Dh76,000 (D) 1,950m; Winner: Rougher, Pat Dobbs, Doug Watson
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
MATCH INFO
Qalandars 109-3 (10ovs)
Salt 30, Malan 24, Trego 23, Jayasuriya 2-14
Bangla Tigers (9.4ovs)
Fletcher 52, Rossouw 31
Bangla Tigers win by six wickets
The story of Edge
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, established Edge in 2019.
It brought together 25 state-owned and independent companies specialising in weapons systems, cyber protection and electronic warfare.
Edge has an annual revenue of $5 billion and employs more than 12,000 people.
Some of the companies include Nimr, a maker of armoured vehicles, Caracal, which manufactures guns and ammunitions company, Lahab
MATCH INFO
Uefa Champions League, last-16 second leg
Paris Saint-Germain (1) v Borussia Dortmund (2)
Kick-off: Midnight, Thursday, March 12
Stadium: Parc des Princes
Live: On beIN Sports HD
Thank You for Banking with Us
Director: Laila Abbas
Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum
Rating: 4/5
Who has lived at The Bishops Avenue?
George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
Land was originally the Bishop of London's hunting park, hence the name
The road was laid out in the mid 19th Century, meandering through woodland and farmland
Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
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.”
