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
match info
Chelsea 2
Willian (13'), Ross Barkley (64')
Liverpool 0
Squad: Majed Naser, Abdulaziz Sanqour, Walid Abbas, Khamis Esmail, Habib Fardan, Mohammed Marzouq (Shabab Al Ahli Dubai), Khalid Essa, Muhanad Salem, Mohammed Ahmed, Ismail Ahmed, Ahmed Barman, Amer Abdulrahman, Omar Abdulrahman (Al Ain), Ali Khaseif, Fares Juma, Mohammed Fawzi, Khalfan Mubarak, Mohammed Jamal, Ahmed Al Attas (Al Jazira), Ahmed Rashid, Mohammed Al Akbari (Al Wahda), Tariq Ahmed, Mahmoud Khamis, Khalifa Mubarak, Jassim Yaqoub (Al Nasr), Ali Salmeen (Al Wasl), Yousef Saeed (Sharjah), Suhail Al Nubi (Baniyas)
An exchange traded fund is a type of investment fund that can be traded quickly and easily, just like stocks and shares. They come with no upfront costs aside from your brokerage's dealing charges and annual fees, which are far lower than on traditional mutual investment funds. Charges are as low as 0.03 per cent on one of the very cheapest (and most popular), Vanguard S&P 500 ETF, with the maximum around 0.75 per cent.
There is no fund manager deciding which stocks and other assets to invest in, instead they passively track their chosen index, country, region or commodity, regardless of whether it goes up or down.
The first ETF was launched as recently as 1993, but the sector boasted $5.78 billion in assets under management at the end of September as inflows hit record highs, according to the latest figures from ETFGI, a leading independent research and consultancy firm.
There are thousands to choose from, with the five largest providers BlackRock’s iShares, Vanguard, State Street Global Advisers, Deutsche Bank X-trackers and Invesco PowerShares.
While the best-known track major indices such as MSCI World, the S&P 500 and FTSE 100, you can also invest in specific countries or regions, large, medium or small companies, government bonds, gold, crude oil, cocoa, water, carbon, cattle, corn futures, currency shifts or even a stock market crash.
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
Super heroes
Iron Man Reduced risk of dementia Alcohol consumption could be an issue
Hulk Cardiac disease, stroke and dementia from high heart rate
Spider-Man Agility reduces risk of falls Increased risk of obesity and mental health issues
Black Panther Vegetarian diet reduces obesity Unknown risks of potion drinking
Black Widow Childhood traumas increase risk of mental illnesses
Thor He's a god
Cultural fiesta
What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421, Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day.
ANALYSTS’ TOP PICKS OF SAUDI BANKS IN 2019
Analyst: Aqib Mehboob of Saudi Fransi Capital
Top pick: National Commercial Bank
Reason: It will be at the forefront of project financing for government-led projects
Analyst: Shabbir Malik of EFG-Hermes
Top pick: Al Rajhi Bank
Reason: Defensive balance sheet, well positioned in retail segment and positively geared for rising rates
Analyst: Chiradeep Ghosh of Sico Bank
Top pick: Arab National Bank
Reason: Attractive valuation and good growth potential in terms of both balance sheet and dividends
The specs
Engine: Direct injection 4-cylinder 1.4-litre Power: 150hp Torque: 250Nm Price: From Dh139,000 On sale: Now
Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Conservative MPs who have publicly revealed sending letters of no confidence
Steve Baker
Peter Bone
Ben Bradley
Andrew Bridgen
Maria Caulfield
Simon Clarke
Philip Davies
Nadine Dorries
James Duddridge
Mark Francois
Chris Green
Adam Holloway
Andrea Jenkyns
Anne-Marie Morris
Sheryll Murray
Jacob Rees-Mogg
Laurence Robertson
Lee Rowley
Henry Smith
Martin Vickers
John Whittingdale
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
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.”
How to apply for a drone permit
Individuals must register on UAE Drone app or website using their UAE Pass
Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
Upload the training certificate from a centre accredited by the GCAA
Submit their request
What are the regulations?
Fly it within visual line of sight
Never over populated areas
Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
Users must avoid flying over restricted areas listed on the UAE Drone app
Only fly the drone during the day, and never at night
Should have a live feed of the drone flight
Drones must weigh 5 kg or less
What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
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.
