Redistribution means tax and benefits, but it must be a progressive tax.

Throughout, we use the term redistribution applied to tax and benefits systems to signify inequality reducing policies, which is achieved when the relative position of individuals at the bottom of the earned income distribution is improved by the tax and benefits system. Thus, for example, a pure flat tax rate would not be redistributive; instead, it is the progressivity of the tax system that makes it redistributive. A progressive tax system is one where the average tax rate (ATR) is increasing in earned equivalised income, where the ATR is the ratio of total family tax liability (net of benefits) to earned income.