Redistribution from the Feds? Not Really.
Contrary to my colleague Doug’s description of the Federal government as existing primarily to redistribute wealth, there is actually very little wealth re-distribution in the United States. The chart above uses numbers I pulled from the latest CBO report showing shares of taxes, pre-tax income, and after-tax income by quintile in 2007 (last year available).
As you can see, there’s very little difference between shares of pre- and post-tax income.
And remember, the above is simply representative of income — not wealth. Here’s a breakdown of financial wealth in the United States in 2007 (last year available):
As you can see, this is why the wealthy in this country pay most of the taxes — they have most of the money, by a staggering amount.