If you like your tax policy explained with brightly colored toys (I do), check out this video from Brookings, which shows how federal taxes affect income inequality.
“Because the government takes more from best-off than from those at the bottom, the average after-tax income of the top quintile ($229,360) is about 17 times that of the bottom ($13,809.),” wrote David Wessell, the director of Brooking’s Hutchins Center on Fiscal and Monetary Policy. “In other words, the U.S. tax system does reduce inequality, but there’s still a lot of it left after taxes.”
