NORFOLK, Virginia // By choosing wonkish budget hawk Paul Ryan as his running mate, White House hopeful Mitt Romney is gambling that voters want nothing less than a showdown over the nation's fiscal future and the role of government in American life.
Bucking conventional wisdom that Romney would opt for safety over risk, for wooing independent voters over firing up the base, the Republican flagbearer has chosen a conservative hero who is a lightning rod for controversy.
Ryan, the serious and impassioned yet even-tempered fiscal pitbull who has emerged as a star in the House of Representatives' Republican caucus who have embraced his plan to slash spending, became the clear choice for many influential conservatives seeking a bold running mate for Romney.
They got it in Ryan, a seven-term congressman from the Midwestern state of Wisconsin.
While a clear Washington insider who at age 42 has already worked on Capitol Hill nearly half his life, the House Budget Committee chairman is pledging a revolutionary, once-a-generation debate about the direction of the economy.
"We are offering the nation a better way forward," Ryan said in March shortly before the House approved his budget proposal by 228 votes to 191, with all Democrats and 10 Republicans opposed.
The budget, Ryan said, shows "how we plan to save this country from a future of debt, doubt and decline."
While the budget, which would cut spending by some $5 trillion over the next decade, has no chance of passing the Democrat-held Senate, it frames the Republican position on spending and debt reduction and puts pressure on Democrats over tax and spending issues.
And yet the plan that Romney has now come to own with his Ryan pick is fraught with political dynamite. President Barack Obama and his Democrats have demonized the plan as giving tax breaks to millionaires while gutting much-needed federal programs and placing excessive financial pressures on middle-class Americans.
It also includes a plan to semi-privatize Medicare, the government health insurance program.
Many conservatives were pressing for such an explosive pick, someone who would not shy away from engaging in monumental debates.
"Mr. Romney's best chance for victory is to make this a big election over big issues," the conservative-leaning Wall Street Journal said in an editorial earlier this month.
"Against the advice of every Beltway bedwetter, (Ryan) has put entitlement reform at the center of the public agenda -- before it becomes a crisis that requires savage cuts," it said, adding that Ryan "best exemplifies the nature and stakes of this election."
Ryan was born and raised in Janesville, in Wisconsin's southeast corner where he still lives with his wife and three children. His family put down roots there four generations ago.
His father died when he was in high school, and the loss turned the young Ryan into an introspective, serious student who held odd jobs, joined the Latin and history clubs in school and pored over books by conservative icon Ayn Rand.
"I grew up really fast," he said in a recent New Yorker magazine profile.
In the early 1990s he worked for a Wisconsin senator, then as a speech writer for revered Republican Jack Kemp, who himself was the vice presidential candidate in 1996.
In 1998, at age 28, Ryan was elected to Congress, and rose quickly in the Republican ranks. By 2004, he set about trying to privatize Social Security, the government safety net for retirees, and while his bid stalled, it presaged the caustic debates over entitlement programs that were to follow.
While Ryan is beloved by core conservatives, and his being on the ticket helps assuage their suspicions about Romney and his policy reversals on issues like abortion and gay rights, some experts wonder whether Romney is courting the right voters in an election many say will go down to the wire in November.
"Romney's got to focus on winning over the swing voters in key states, and I don't think Paul Ryan will help in any way," said politics professor Alan Abramowitz of Emory University.
There is also concern that picking Ryan plucks him out of the House, where he has enjoyed vast influence molding the Republican agenda, and would place him in a Romney White House where he'd have to fall in line with his boss's pragmatism rather than focus on his own sweeping fiscal plans.
Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months
RESULTS
Lightweight (female)
Sara El Bakkali bt Anisha Kadka
Bantamweight
Mohammed Adil Al Debi bt Moaz Abdelgawad
Welterweight
Amir Boureslan bt Mahmoud Zanouny
Featherweight
Mohammed Al Katheeri bt Abrorbek Madaminbekov
Super featherweight
Ibrahem Bilal bt Emad Arafa
Middleweight
Ahmed Abdolaziz bt Imad Essassi
Bantamweight (female)
Ilham Bourakkadi bt Milena Martinou
Welterweight
Mohamed Mardi bt Noureddine El Agouti
Middleweight
Nabil Ouach bt Ymad Atrous
Welterweight
Nouredine Samir bt Marlon Ribeiro
Super welterweight
Brad Stanton bt Mohamed El Boukhari
MATCH INFO
Uefa Champions League semi-final, second leg result:
Ajax 2-3 Tottenham
Tottenham advance on away goals rule after tie ends 3-3 on aggregate
Final: June 1, Madrid
Tips to avoid getting scammed
1) Beware of cheques presented late on Thursday
2) Visit an RTA centre to change registration only after receiving payment
3) Be aware of people asking to test drive the car alone
4) Try not to close the sale at night
5) Don't be rushed into a sale
6) Call 901 if you see any suspicious behaviour
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
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
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.”