Meeting on IOF ends without agreement. Understand why.

According to reports, Finance Minister Fernando Haddad insists on defending an increase in the IOF tax rate – a point of contention between the Executive and Legislative branches. The Speaker of the House, Hugo Motta, has resisted the idea of ​​raising the tax, even though it would affect people with higher purchasing power. The meeting took place on Tuesday evening and also included the President of the Senate, Davi Alcolumbre, as well as government ministers such as Gleisi Hoffmann (Institutional Relations) and Jorge Messias (Attorney General). 

The Finance Minister's insistence ended any chance of an agreement, and the meeting concluded without progress. The latest decree issued by the government was overturned by Parliament, generating a crisis between the branches of power. The Supreme Court was called upon to arbitrate and decided to suspend the decrees issued by the Executive branch. Furthermore, it scheduled a conciliation hearing between the branches of government for next week.