The Initiative calls for the richest one percent of the population is taxed in the capital income such as interest and dividends is stronger. Specifically, these funds are to be taxed at 1.5 times the wages of the workers. In return, the rest of the 99 percent are to be relieved in the case of the labour income.

The Federal Council sees no need for action. In an international comparison, the income before taxes and government transfers were distributed benefits evenly, the demand for redistribution is lower than in other countries. Progressive wealth and income taxes increased the redistribution.

increasing the taxes on the Rich and would appeal to the Switzerland-reduce

In addition, the Initiative is considered by the government very carefully to the reduction of income inequality. The higher taxation that is based solely on the type of income and not on its height.

An increase in the taxes on capital income would reduce the attractiveness of Switzerland for Rich. Due to the control sensitivity is likely to result, contrary to the hopes of the initiators, no more revenue.

The Initiative would lead to an Expansion of the transfer services. Its extent would be determined by the widely fluctuating tax revenues from the capital income and not by the needs. (SDA)