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Tax Foundation: Redistribution Alters the Share of National Income

So how does redistribution alter the shares of national income?  The Tax Foundation provides an interesting graphic to that effect in their post, “Redistribution Alters the Share of National Income“.  The Tax Foundation laid out the following conclusions:

  • Prior to redistribution by government, the top 20 percent of families earned 55 percent of the nation’s income. After government’s tax and spending policies, these families earned 39.6 percent of the nation’s income.
  • The bottom 20 percent of the population earned 3.1 percent of total income in 2012, but redistribution from all government sources increased their incomes by $1.1 trillion, raising their share of the nation’s income to 11.8 percent.
  • The middle quintile gained from redistribution raising their share of the nation’s income from 14% to 16.4%

Credit to Scott Hodge and Andrew Lundeen:

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