The cornerstone of President Joe Biden’s domestic agenda appears back on track after Democrats agreed on a revised version of their tax and climate bill late on Wednesday.
But it came at a price: dropping a provision that would have narrowed a tax break for carried interest, altering a 15 per cent minimum tax on corporations and adding a new 1 per cent excise tax on stock buybacks.
The key was getting Kyrsten Sinema over the line. She was the pivotal Democratic vote in the 50-50 Senate and wanted the levy on wealthy hedge fund managers to be abandoned.
Democrats have been eager to finish work on the legislation, even though it has been drastically scaled back from Mr Biden’s original vision for an expansive tax and social spending package that would advance the party’s climate goals.
From the White House, where he remains in isolation due to Covid-19, Mr Biden praised it as “another critical step towards reducing inflation and the cost of living for America’s families” and urged the Senate to pass it quickly.
“This bill is a game-changer for working families and our economy,” he said during remarks at the White House on Friday.
“I look forward to the Senate taking up this legislation and passing it as soon as possible.”
Voting will begin this weekend.
But Senate Democrats are still waiting for the parliamentarian to determine whether parts of the bill meet the chamber’s strict budget rules.
This means things such as the domestic content requirements for cars eligible for electric vehicle tax credits, caps on insulin out-of-pocket costs and penalties for drug companies raising prices higher than inflation could be struck.
That would dilute the bill even further.
Senate Majority Leader Chuck Schumer said in a statement that the revised legislation will be brought to the chamber floor on Saturday, setting the bill on the way to passage with a simple majority vote.
He believes all 50 members of the Democratic caucus back it, including West Virginia's Joe Manchin, who was a critical partner in resurrecting the bill.
Removing the measure to raise taxes on private equity managers from the bill means that the legislation, which Democrats initially envisioned as a way to overhaul the tax code, will not include any new taxes on the rich.
It is definitely a compromise, but Democrats are running out of time, given they are expected to suffer heavy losses in midterm elections in November.
HIJRA
Starring: Lamar Faden, Khairiah Nathmy, Nawaf Al-Dhufairy
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At a glance
Fixtures All matches start at 9.30am, at ICC Academy, Dubai. Admission is free
Thursday UAE v Ireland; Saturday UAE v Ireland; Jan 21 UAE v Scotland; Jan 23 UAE v Scotland
UAE squad Rohan Mustafa (c), Ashfaq Ahmed, Ghulam Shabber, Rameez Shahzad, Mohammed Boota, Mohammed Usman, Adnan Mufti, Shaiman Anwar, Ahmed Raza, Imran Haider, Qadeer Ahmed, Mohammed Naveed, Amir Hayat, Zahoor Khan
How to keep control of your emotions
If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.
Greed
Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.
Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.
Fear
The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.
Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.
Hope
While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.
Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.
Frustration
Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.
Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.
Boredom
Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.
Tip: Open an online demo account and get your thrills without risking real money.
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