The government already counts, behind the scenes, on the jurisprudence of the Federal Supreme Court (STF) as a pressure factor to approve in the National Congress the most controversial point of the package of economic measures: the exemption from Income Tax for workers with incomes of up to R $5,000 a month and the taxation of the “super rich”.
In general terms, the economic team estimates that (R$ 600 thousand per year) will fully compensate, in budgetary terms, the tax waivers with the increase in income tax exemption.
One of the market’s fears, however, is that only “goodness” () will be approved by Congress. And that greater taxation of the “super-rich”, the “evil” part of history, be blocked or emptied during the legislative process.
Here comes the “double” of the Executive with the Judiciary. The government looks to the Federal Supreme Court (STF) as a kind of guarantor of both measures simultaneously. Why?
To answer, it is necessary to remember , which was extended by Congress and then . The veto was adopted and an impasse ensued, with parliamentarians blocking compensatory measures suggested by the government.
Then came a decision from the STF that changed the direction of the discussion. The Supreme Court defined that. The soap opera only ended when it lasted longer.
For presidential assistants, the same reasoning applies now: if Congress approves “goodness” (exemption from income tax up to R$5,000) and rejects “evil” (taxation of the super-rich), the government will count on the STF to say that this cannot be done, that this cannot be done. That it is always necessary to point out compensation for new expenses or tax waivers.
In the end, it’s about the government acting now, calculating with a little help from the Supreme Court, tomorrow.
