A woman takes part in a rally to support US President Donald Trump and the Back the Blue in Bedminster, New Jersey, US, July 26. Eduardo Munoz / Reuters
A woman takes part in a rally to support US President Donald Trump and the Back the Blue in Bedminster, New Jersey, US, July 26. Eduardo Munoz / Reuters
A woman takes part in a rally to support US President Donald Trump and the Back the Blue in Bedminster, New Jersey, US, July 26. Eduardo Munoz / Reuters
A woman takes part in a rally to support US President Donald Trump and the Back the Blue in Bedminster, New Jersey, US, July 26. Eduardo Munoz / Reuters

What is the future of the Republican Party if Donald Trump loses?


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Donald Trump appears to be sinking fast in the run-up to the November election, now less than 100 days away, and many fear he's dragging the whole Republican Party down with him. Yet Republican officials, with rare exceptions, are sticking with the President, and aren't uttering a word of criticism or trying to distance from him. Why?

Most elected Republicans were never big fans of Mr Trump. Four years ago, the US President engineered a hostile takeover of their party with passionate support from base voters but against opposition from party leaders.

Eventually, the establishment capitulated. But now, given the mishandled coronavirus pandemic and concomitant economic effects, Republican leaders face a conundrum.

Do they effectively shake off Mr Trump’s leadership or distance themselves from him in the hope of being re-elected? Can they try to salvage their own reputations, and that of their party, in what seems set to go down as a historically remarkably failed presidency?

Or do they continue to hope that Mr Trump will find a way to turn his and their own fortunes around by fighting a close (or even winning) race against Joe Biden and, perhaps more importantly, retaining Republican control of the Senate?

Should they continue, therefore, to insist they respect Mr Trump because, if he turns on them, so will many of their own voters?

Nationally, it appears that the majority of the country is moving away from the President and the party he leads, largely because of his policies and personality. He speaks and acts as if there were a large "silent majority" that furtively agrees with the reactionary racial, cultural and religious positions he advocates. But most evidence suggests that, while he certainly does speak for a passionate following, a large and growing national majority rejects these views.

US President Donald Trump and Attorney General William Barr during a briefing in the Oval Office of the White House in Washington DC, June 20. Patrick Semansky / AP
US President Donald Trump and Attorney General William Barr during a briefing in the Oval Office of the White House in Washington DC, June 20. Patrick Semansky / AP

In deeply conservative states, elected Republicans may not have much to fear. Simply supporting the party and its leader is obviously their best bet to get re-elected.

However, numerous once-solidly Republican states are becoming strikingly competitive. Texas, Georgia, North and South Carolina and several others might now see the election of Democrats.

This is partly because of broader demographic changes, but is also partly caused by Mr Trump's style and policy failures.

A further complication is that because Mr Trump doesn't care about most policies

In such circumstances, any sensible Republican candidate would reach out to the centre. But how to do that without crossing the president?

The costs can be fatal. Former attorney general Jeff Sessions was just defeated in a Republican Senate primary in Alabama because Mr Trump never forgave him for recusing himself from Russia-related investigations. He is only the most recent such victim.

Many Republican candidates need to secure their base while reaching beyond it, but are confronted with Mr Trump’s combative stridency. Anything that smacks of betrayal is fatal but so is being too close to his most controversial statements and policies.

A powerful right-wing media ecosystem provides the enforcement, especially vituperative evening opinion shows on Fox News. It is fiercely loyal to Mr Trump and eager to punish any deviant heretic who can be made an example of.

A further complication is that because Mr Trump doesn't care about most policies, he has adopted a familiar Republican agenda on many important issues.

Republicans have achieved some significant goals by submitting to Mr Trump, including securing tax cuts, environmental and other forms of deregulation, extremely conservative judges, increased military spending, limits on rights for transgender Americans and support for Christian fundamentalism.

It's a Faustian bargain but they do like what they got out of it.

Yet, insofar as they believe in anything, most of these Republicans remain traditional conservatives and have been set ideologically adrift in the party’s new Trumpian era.

Most came of age within a more libertarian movement, influenced by former president Ronald Reagan, that was based on smaller government and lower taxes. Now they suddenly find themselves operating in a populist, and often white nationalist, environment in which they are not fully comfortable.

But few have the stomach or intellect for a major ideological conflict. And they lack any credible alternative that is not rooted in the now-distant late 1970s.

Four years ago, to save themselves, they jumped in to Mr Trump's lifeboat. But what will they do if it falls apart soon?

There are at least three plausible scenarios, depending on the election results.

If it is close, and especially if Republicans keep a Senate majority, Trumpians like Senators Tom Cotton and Josh Hawley, or Fox News host Tucker Carlson, may battle for control of this new populist party with white nationalist undertones.

If Republicans suffer a devastating defeat, traditional conservatives like Senator Mitt Romney or Maryland Governor Larry Hogan (both sons of centrist former Republican leaders) could potentially mount a comeback.

US Senator Mitt Romney, Republican of Utah, heads into a Republican policy lunch on Capitol Hill in Washington, US on July 21. Olivier Douliery/ AFP
US Senator Mitt Romney, Republican of Utah, heads into a Republican policy lunch on Capitol Hill in Washington, US on July 21. Olivier Douliery/ AFP

If the party loses badly, but not absolutely devastatingly – and possibly even then – perhaps the best placed is Nikki Haley, a former South Carolina governor and Mr Trump's first UN ambassador. Ms Haley has carefully positioned herself equidistantly between the traditional Reaganite wing of the party and the new Trumpian one.

Former UN Ambassador Nikki Haley visits "Fox & Friends" at Fox News Channel Studios on November 12, 2019 in New York City. John Lamparski / Getty Images / AFP
Former UN Ambassador Nikki Haley visits "Fox & Friends" at Fox News Channel Studios on November 12, 2019 in New York City. John Lamparski / Getty Images / AFP

She joined Mr Trump's administration at its outset, and was careful to maintain a distance while never fully falling out with him. Since she left the administration, she has calibrated strong support for him with trying not to seem too much like an unwavering acolyte.

Many scenarios are possible, but Ms Haley could seek to present herself as a Republican unifier who can bring the old Reaganite party together with the new Trumpian one in a new form of conservative "fusionism". Her status as a woman of colour, but from the Deep South, and a committed Christian fundamentalist won't hurt in a post-Trump era.

There is a fourth, distant but not unimaginable scenario. It may be that under Mr Trump the Republican Party is charging so aggressively and quickly in the opposite direction to most of the country that it could soon prove non-viable and uncompetitive at a national level and could go the way of the whig party that collapsed in the 1840s.

This is unlikely, but no longer inconceivable.

Republican leaders are left wondering if their party is just facing defeat, or conceivably extinction and replacement by a new centre-right grouping, and what they can possibly do about it.

For now, it seems, the answer is not much.

Hussein Ibish is a senior resident scholar at the Arab Gulf States ­Institute in Washington

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Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

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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

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UAE rugby season

FIXTURES

West Asia Premiership

Dubai Hurricanes v Dubai Knights Eagles

Dubai Tigers v Bahrain

Jebel Ali Dragons v Abu Dhabi Harlequins

UAE Division 1

Dubai Sharks v Dubai Hurricanes II

Al Ain Amblers v Dubai Knights Eagles II

Dubai Tigers II v Abu Dhabi Saracens

Jebel Ali Dragons II v Abu Dhabi Harlequins II

Sharjah Wanderers v Dubai Exiles II

 

LAST SEASON

West Asia Premiership

Winners – Bahrain

Runners-up – Dubai Exiles

UAE Premiership

Winners – Abu Dhabi Harlequins

Runners-up – Jebel Ali Dragons

Dubai Rugby Sevens

Winners – Dubai Hurricanes

Runners-up – Abu Dhabi Harlequins

UAE Conference

Winners – Dubai Tigers

Runners-up – Al Ain Amblers