Today, in principle, all income such as wages, pensions and capital income (e.g. interest, dividends and income from rentals) is taxed in full. These income taxes help to mitigate inequalities in the distribution of income within the population. People with high incomes therefore pay more in percentage terms than those with low incomes.

In the view of the initiative’s authors, existing methods of redistribution are insufficient and taxation is not fair enough. They demand greater taxation of high capital income. Above a certain amount, capital income should be weighted more heavily in calculating taxes and count one and a half times. So for every franc above that amount, tax would have to be paid as if it were CHF 1.50. If the initiative is accepted, the amount above which the higher taxation would apply would be determined by Parliament. The revenue generated from the higher taxation would be used for tax reductions for people on low or medium incomes, or go towards social welfare.