How Much Does U.S. Fiscal System Redistribute?

52 Pages Posted: 29 Nov 2023 Last revised: 18 Nov 2024

See all articles by Thomas Coleman

Thomas Coleman

University of Chicago - Harris School of Public Policy

David A. Weisbach

University of Chicago - Law School

Date Written: November 18, 2024

Abstract

There is a widespread view that the tax and transfer system has become less progressive and less redistributive. To assess this view, we compare data from three studies: Congressional Budget Office (2024), Piketty, Saez, Zucman (2018), and Auten and Splinter (2024). Although they use different definitions of income, units, and taxes and transfers, all three show that the tax and transfer system has become more redistributive, not less. We also review all studies of the issue since 2012, which confirms these findings. In short, there is robust evidence across definitions and methodologies, that the tax system has become more redistributive. 

Keywords: progressivity, redistribution, inequality

JEL Classification: H20, H23

Suggested Citation

Coleman, Thomas and Weisbach, David,

How Much Does U.S. Fiscal System Redistribute?

(November 18, 2024). University of Chicago Coase-Sandor Institute for Law & Economics Research Paper No. #991, Available at SSRN: https://ssrn.com/abstract=4647122 or http://dx.doi.org/10.2139/ssrn.4647122

Thomas Coleman

University of Chicago - Harris School of Public Policy ( email )

1155 East 60th Street
Chicago, IL 60637
United States

David Weisbach (Contact Author)

University of Chicago - Law School ( email )

1111 E. 60th St.
Chicago, IL 60637
United States
773-702-3342 (Phone)
773-702-0730 (Fax)

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