Excellent example :)<p>It&#x27;s the interplay of tax and expenditure which redistributes income. So, to use your example: If the government spent 100% of tax revenue on the girls, then there is no redistribution.<p>And as we all know, in the real world US, virtually all Federal expenditure is on social welfare, defense, and interest on the debt. Thus you could cut ~75% of tax revenue before the effect you discuss comes into being.