Abstract
ABSTRACT Inequality is shown to shape public policies with significant redistributive ramifications. As a measure of the poor median voter's dissatisfaction with the economic status quo, some scholars argue that it is an indicator of redistributive pressure. Yet for others, it is a proxy for the power asymmetry between the rich and the poor in policymaking. How does inequality affect redistributive tax policies? We offer an explanation based on policymaker ideology. We show that when inequality rises, left-leaning policymakers craft more redistributive policies while right-leaning policymakers suppress them. Using the top income shares for inequality, we analyse two datasets to corroborate our argument: (1) cross-national inheritance and income tax data; and (2) U.S. Senate votes on redistributive tax bills.
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