Closed signs have sprung up across Washington and at federal sites around the US as the government shutdown takes hold.
The lights went out at non-essential government agencies after Democrats refused to give Republicans the 60 votes they needed to pass a government spending bill.
The fight is over federal subsidies for certain types of health insurance. The Republicans want to end pandemic-era help; the Democrats want to keep it in place. If the cuts happen, as many as four million people could lose their coverage as insurance premiums rocket, according to the Congressional Budget Office.
Predictably, both sides are pointing the finger at each other. Vice President JD Vance appeared at a White House media briefing on Wednesday to repeat the Trump administration's false claim that Democrats are trying to force the government to pay for the health care of undocumented migrants. But the “illegal aliens” Mr Vance was referring to are already barred from federal assistance.
The last time this happened was at the end of 2018 during President Donald Trump's first term. Then, the fight was over funding to build a wall along the US border with Mexico. He did not get the money he wanted and the shutdown ended after 35 days – the longest in US history.
This time, Mr Trump seems disinclined to yield to the Democrats' demands and is threatening to fire thousands of federal workers if the shutdown drags on.
On Thursday, the President said he would talk to his budget director Russell Vought to determine which “Democrat Agencies” to cut. Mr Vought was previously involved with Project 2025, a plan by the conservative Heritage Foundation to shrink and overhaul the federal government.
“I can’t believe the radical-left Democrats gave me this unprecedented opportunity,” Mr Trump said on Truth Social.
Thanks to the shutdown, about 750,000 federal employees are already being placed on furlough, which means they will be unable to work and won't be paid until the shutdown ends. Signs of Washington's dysfunction are visible on the National Mall, with the Washington Monument closed to visitors. Even the National Guard that Mr Trump sent to the US capital are now working without pay.
“Republicans and the Democrats and trying to score political points, but it does seem that both sides are just using the people, ordinary people, as the pawns in all of us,” Peter, a Scottish tourist who had come to see Washington's famous landmarks, told me near the closed visitor centre outside Congress.
“I can't help but feel sorry for people who are having to pay the groceries and all the rest of it when they're not having an income during this period.”
Another ramification is that the Labour Department will pause releasing economic data, possibly including Friday's jobs report, which would deprive the Federal Reserve of vital numbers as it considers future interest rate cuts. National park offices will be closed, health agencies will stop analysing disease data and many government services will be put on pause.
The Democrats have been in the political wilderness since Mr Trump took office eight months ago, unable to alter his agenda thanks to a Republican lock on Congress and the Supreme Court. Experts in fumbling their own messages, the Democrats are betting they can use their rare moment in the spotlight to highlight the effects of Republican policies on millions of Americans.
But in today's choose-your-own-reality America, they will struggle to sway many voters' opinions and a good part of the country will have forgotten about all this at next year's midterms anyway.
Ultimately, the shutdown will probably wipe billions from the US economy and will end up fuelling voter distrust of both parties. Get ready for a bitter fight.
Tour de France
When: July 7-29
UAE Team Emirates:
Dan Martin, Alexander Kristoff, Darwin Atapuma, Marco Marcato, Kristijan Durasek, Oliviero Troia, Roberto Ferrari and Rory Sutherland
Profile
Company name: Jaib
Started: January 2018
Co-founders: Fouad Jeryes and Sinan Taifour
Based: Jordan
Sector: FinTech
Total transactions: over $800,000 since January, 2018
Investors in Jaib's mother company Alpha Apps: Aramex and 500 Startups
World Test Championship table
1 India 71 per cent
2 New Zealand 70 per cent
3 Australia 69.2 per cent
4 England 64.1 per cent
5 Pakistan 43.3 per cent
6 West Indies 33.3 per cent
7 South Africa 30 per cent
8 Sri Lanka 16.7 per cent
9 Bangladesh 0
The biog
Place of birth: Kalba
Family: Mother of eight children and has 10 grandchildren
Favourite traditional dish: Al Harees, a slow cooked porridge-like dish made from boiled cracked or coarsely ground wheat mixed with meat or chicken
Favourite book: My early life by Sheikh Dr Sultan bin Muhammad Al Qasimi, the Ruler of Sharjah
Favourite quote: By Sheikh Zayed, the UAE's Founding Father, “Those who have no past will have no present or future.”
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
More from Rashmee Roshan Lall
5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
