US Treasury Secretary Janet Yellen is leading the Biden administration's call for a baseline on corporate taxation globally. Reuters
US Treasury Secretary Janet Yellen is leading the Biden administration's call for a baseline on corporate taxation globally. Reuters
US Treasury Secretary Janet Yellen is leading the Biden administration's call for a baseline on corporate taxation globally. Reuters
US Treasury Secretary Janet Yellen is leading the Biden administration's call for a baseline on corporate taxation globally. Reuters

Yellen's idea of a global minimum tax rate is just a first step for a progressive agenda


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In the eyes of history, Janet Yellen is set to be seen as a truly transformational figure if her proposal for a global minimum multinational tax rate gains acceptance.

Economic history has a way of shifting in life cycles. The Bretton Woods era and the Marshall Plan set the stage for the post-Second World War economic order. The launch of the World Trade Organisation and the Brady Plan for debt shaped the post-Cold War Golden Era of globalisation.

Ms Yellen’s push for a baseline on corporate taxation comes as policymakers seek to lay the foundations for a post-Covid-19 and increasingly carbon-neutral economy.

While a global standard for corporate taxes may sound dry, it in fact represents a step change from capitalism as we know it. Taken in a context of rising progressive pressure for reparations for colonial economic exploitation, the move lays the groundwork for something quite dramatic.

The intellectual sands within the economic profession have rapidly shifted. Many think Ms Yellen’s idea is far too modest. Some propose new variations on transaction taxes, such as a levy on all share price values or on digital activity.

Resistance should be straightforward for Ms Yellen to overcome. The private economy is benefiting from the second mass mobilisation of resources to stabilise and recapitalise the economy in less than 11 years.

In her previous role as a leader of the Federal Reserve, Ms Yellen was instrumental in the quantitative easing programmes that brought recovery from the Great Financial crisis. Now that she has been appointed Secretary of the Treasury in the Biden administration, she has lost no time in proposing a dramatic tilt in the system.

With governments taking more money from corporations, the scope for fiscal spending to play a bigger role in the economy is bound to expand.

The new US government has proposed that its own corporate tax should rise to 28 per cent and that foreign income for those companies should be taxed. With a substantial pandemic-related stimulus package already in train and a $2.3 trillion infrastructure proposal on the table, the Biden administration needs to fund at least part of its new deal.

When the finance ministers of the International Monetary Fund and World Bank met recently, Washington proposed a global plan for uniform rates. The kicker is that countries would be able to apply the taxes if earnings in other states were taxed at a lower rate to make up the difference. That would effectively reduce incentives for US corporates to shift profits to low-tax nations that have prioritised development over government revenues.

Some developed countries have already responded to the pandemic by reversing the trend towards lowering corporation taxes, such as the UK. The 37 members of the Organisation for Economic Co-operation and Development are looking to seal a deal on a digital services tax and corporate taxes by the middle of this year.

International agreement is necessary because the existing cross-border taxation treaties only allow countries to impose taxes on businesses with a permanent presence in their borders. This allows plenty of booking of revenues or profits offshore, effectively eliminating the taxman.

The signing of the Bretton Woods Agreements in July 1944. The Bretton Woods era and the Marshall Plan set the stage for the post-Second World War economic order. Getty Images
The signing of the Bretton Woods Agreements in July 1944. The Bretton Woods era and the Marshall Plan set the stage for the post-Second World War economic order. Getty Images

European countries have been embroiled in a tariff war with the US over their attempts to impose Digital Sales Taxes on companies. Washington believes these discriminate against the mighty US presence in the sector.

Abandoning this approach would not have any great cost for the Europeans, as the digital taxes imposed so far have not raised much revenue for governments. In a report last week, the Centre for European Reform said “a deal broadly around the current US proposal is a realistic possibility and is in the EU’s interest”.

The direction of travel is moving to a burden-sharing ethos by taking from privately held wealth to the governments.

A study by Emmanuel Saez and Gabriel Zucman, who work at University of California in Berkeley, calls on companies to pay 0.2 per cent of stock market valuation in taxes. "As the G20 stock market capitalisation is around $90tn, the tax would raise approximately $180 billion each year," their report said. That is, of course, puny compared to the $2tn infrastructure proposal Mr Biden is pushing in the US alone.

French economist Thomas Piketty has called for a historic set of payments between colonial exploiters and the developed countries.. Alamy
French economist Thomas Piketty has called for a historic set of payments between colonial exploiters and the developed countries.. Alamy
The direction of travel is moving to a burden-sharing ethos by taking from privately held wealth to the governments

Thomas Piketty, the leftist French economist, asks why not also look at making a historic set of payments between colonial exploiters and the developed countries. This healing gesture would chime with those who have protested outside institutions and businesses with ties to slavery and other global ills.

The godfather of "social tax justice" sees much greater challenges ahead. He sees the benefits of tax reforms accruing in developed countries and cutting out the developing nations. Using a case study of Haiti, Mr Piketty wants Paris to hand over 300 per cent of that country’s GDP, or $30bn. Such a sum is one per cent of French public debt but would make a massive difference to the stricken Caribbean country’s outlook.

He argues that inequality of wealth and poverty must be addressed on an international basis and within countries.

Government spending is a means of intervening against these trends. By internationalising the issue, Washington would give new respectability to a much greater rebalancing of the global wealth scales.

Damien McElroy is the London bureau chief at The National

What can you do?

Document everything immediately; including dates, times, locations and witnesses

Seek professional advice from a legal expert

You can report an incident to HR or an immediate supervisor

You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline

In criminal cases, you can contact the police for additional support

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

UAE currency: the story behind the money in your pockets
Nepotism is the name of the game

Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad. 

Chef Nobu's advice for eating sushi

“One mistake people always make is adding extra wasabi. There is no need for this, because it should already be there between the rice and the fish.
“When eating nigiri, you must dip the fish – not the rice – in soy sauce, otherwise the rice will collapse. Also, don’t use too much soy sauce or it will make you thirsty. For sushi rolls, dip a little of the rice-covered roll lightly in soy sauce and eat in one bite.
“Chopsticks are acceptable, but really, I recommend using your fingers for sushi. Do use chopsticks for sashimi, though.
“The ginger should be eaten separately as a palette cleanser and used to clear the mouth when switching between different pieces of fish.”

All%20The%20Light%20We%20Cannot%20See%20
%3Cp%3E%3Cstrong%3ECreator%3A%20%3C%2Fstrong%3ESteven%20Knight%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%C2%A0%3C%2Fstrong%3EMark%20Ruffalo%2C%20Hugh%20Laurie%2C%20Aria%20Mia%20Loberti%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E1%2F5%C2%A0%3C%2Fp%3E%0A
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
Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now

Ways to control drones

Countries have been coming up with ways to restrict and monitor the use of non-commercial drones to keep them from trespassing on controlled areas such as airports.

"Drones vary in size and some can be as big as a small city car - so imagine the impact of one hitting an airplane. It's a huge risk, especially when commercial airliners are not designed to make or take sudden evasive manoeuvres like drones can" says Saj Ahmed, chief analyst at London-based StrategicAero Research.

New measures have now been taken to monitor drone activity, Geo-fencing technology is one.

It's a method designed to prevent drones from drifting into banned areas. The technology uses GPS location signals to stop its machines flying close to airports and other restricted zones.

The European commission has recently announced a blueprint to make drone use in low-level airspace safe, secure and environmentally friendly. This process is called “U-Space” – it covers altitudes of up to 150 metres. It is also noteworthy that that UK Civil Aviation Authority recommends drones to be flown at no higher than 400ft. “U-Space” technology will be governed by a system similar to air traffic control management, which will be automated using tools like geo-fencing.

The UAE has drawn serious measures to ensure users register their devices under strict new laws. Authorities have urged that users must obtain approval in advance before flying the drones, non registered drone use in Dubai will result in a fine of up to twenty thousand dirhams under a new resolution approved by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai.

Mr Ahmad suggest that "Hefty fines running into hundreds of thousands of dollars need to compensate for the cost of airport disruption and flight diversions to lengthy jail spells, confiscation of travel rights and use of drones for a lengthy period" must be enforced in order to reduce airport intrusion.

The specs

Engine: Two permanent-magnet synchronous AC motors

Transmission: two-speed

Power: 671hp

Torque: 849Nm

Range: 456km

Price: from Dh437,900 

On sale: now

EA Sports FC 26

Publisher: EA Sports

Consoles: PC, PlayStation 4/5, Xbox Series X/S

Rating: 3/5

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

Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

if you go

The flights

Emirates offer flights to Buenos Aires from Dubai, via Rio De Janeiro from around Dh6,300. emirates.com

Seeing the games

Tangol sell experiences across South America and generally have good access to tickets for most of the big teams in Buenos Aires: Boca Juniors, River Plate, and Independiente. Prices from Dh550 and include pick up and drop off from your hotel in the city. tangol.com

 

Staying there

Tangol will pick up tourists from any hotel in Buenos Aires, but after the intensity of the game, the Faena makes for tranquil, upmarket accommodation. Doubles from Dh1,110. faena.com

 

TCL INFO

Teams:
Punjabi Legends 
Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan

Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
When December 14-17

It Was Just an Accident

Director: Jafar Panahi

Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr

Rating: 4/5

The specs

Engine: 5.0-litre supercharged V8

Transmission: Eight-speed auto

Power: 575bhp

Torque: 700Nm

Price: Dh554,000

On sale: now

Company%20Profile
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Ibrahim's play list

Completed an electrical diploma at the Adnoc Technical Institute

Works as a public relations officer with Adnoc

Apart from the piano, he plays the accordion, oud and guitar

His favourite composer is Johann Sebastian Bach

Also enjoys listening to Mozart

Likes all genres of music including Arabic music and jazz

Enjoys rock groups Scorpions and Metallica 

Other musicians he likes are Syrian-American pianist Malek Jandali and Lebanese oud player Rabih Abou Khalil

Torbal Rayeh Wa Jayeh
Starring: Ali El Ghoureir, Khalil El Roumeithy, Mostafa Abo Seria
Stars: 3

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Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

Going grey? A stylist's advice

If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”

Pari

Produced by: Clean Slate Films (Anushka Sharma, Karnesh Sharma) & KriArj Entertainment

Director: Prosit Roy

Starring: Anushka Sharma, Parambrata Chattopadhyay, Ritabhari Chakraborty, Rajat Kapoor, Mansi Multani

Three stars

Mobile phone packages comparison
One in nine do not have enough to eat

Created in 1961, the World Food Programme is pledged to fight hunger worldwide as well as providing emergency food assistance in a crisis.

One of the organisation’s goals is the Zero Hunger Pledge, adopted by the international community in 2015 as one of the 17 Sustainable Goals for Sustainable Development, to end world hunger by 2030.

The WFP, a branch of the United Nations, is funded by voluntary donations from governments, businesses and private donations.

Almost two thirds of its operations currently take place in conflict zones, where it is calculated that people are more than three times likely to suffer from malnutrition than in peaceful countries.

It is currently estimated that one in nine people globally do not have enough to eat.

On any one day, the WFP estimates that it has 5,000 lorries, 20 ships and 70 aircraft on the move.

Outside emergencies, the WFP provides school meals to up to 25 million children in 63 countries, while working with communities to improve nutrition. Where possible, it buys supplies from developing countries to cut down transport cost and boost local economies.

 

German plea
Ukrainian President Volodymyr Zelenskyy told the German parliament that. Russia had erected a new wall across Europe. 

"It's not a Berlin Wall -- it is a Wall in central Europe between freedom and bondage and this Wall is growing bigger with every bomb" dropped on Ukraine, Zelenskyy told MPs.

Mr Zelenskyy was applauded by MPs in the Bundestag as he addressed Chancellor Olaf Scholz directly.

"Dear Mr Scholz, tear down this Wall," he said, evoking US President Ronald Reagan's 1987 appeal to Soviet leader Mikhail Gorbachev at Berlin's Brandenburg Gate.

The biog

Favourite film: Motorcycle Dairies, Monsieur Hulot’s Holiday, Kagemusha

Favourite book: One Hundred Years of Solitude

Holiday destination: Sri Lanka

First car: VW Golf

Proudest achievement: Building Robotics Labs at Khalifa University and King’s College London, Daughters

Driverless cars or drones: Driverless Cars

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

COMPANY%20PROFILE
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What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

Emergency

Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5