Figure B

Percent reduction in inequality (Gini index) from federal taxes and transfers, 1979–2007

From federal taxes From transfers Total from taxes and transfers
1979 9.9% 15.0% 23.4%
1980 9.4% 15.8% 23.7%
1981 8.3% 15.5% 22.5%
1982 6.6% 15.7% 21.3%
1983 5.9% 15.0% 20.0%
1984 5.7% 14.0% 18.8%
1985 5.2% 13.8% 18.3%
1986 4.8% 13.1% 17.3%
1987 6.6% 14.0% 19.7%
1988 6.2% 13.3% 18.7%
1989 6.2% 13.3% 18.7%
1990 5.8% 13.8% 18.8%
1991 6.2% 14.8% 20.1%
1992 6.4% 14.5% 20.0%
1993 7.4% 15.0% 21.3%
1994 8.1% 15.2% 22.0%
1995 8.4% 14.6% 21.8%
1996 8.4% 13.6% 20.8%
1997 7.9% 12.8% 19.8%
1998 7.9% 12.2% 19.1%
1999 8.0% 11.6% 18.7%
2000 7.6% 11.3% 18.0%
2001 7.9% 12.6% 19.5%
2002 7.7% 13.6% 20.3%
2003 7.4% 13.7% 20.1%
2004 7.2% 12.8% 19.1%
2005 7.3% 12.2% 18.6%
2006 7.2% 11.8% 18.2%
2007 6.7% 11.2% 17.1%
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Source: CBO (2011)

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