The case is particularly interesting because the Supreme Court avoided the usual pattern of trying to narrow the question to an interpretation of federal law and instead instructed the parties to answer whether the Constitution bars such suits.

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"If the constitution is not followed, or there is a conflict of interpretation, the Supreme Court has to take a position, " he said.

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And, a basic fundamental of interpretation of law (and all other law of the United States must ultimately arise from the Constitution) is that a law says what it says and does not say what it does not say.

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But one interpretation of Brazil's constitution holds that higher rates for higher earners can be imposed only through the income tax.

ECONOMIST: Brazil