‘Fiscal redistribution’ must affect post-tax inequality---[x] is non-fiscal redistribution, because it aims to address primary distribution of income.

Fiscal redistribution policies are aimed at reducing inequality of disposable income after taxes and transfers have been applied

Antoine Bozio 18, Director of the Institut des politiques publiques, Associate researcher at the Paris School of Economics, et al., 9/2018, “Inequality and Redistribution in France, 1990-2018: Evidence from Post-Tax Distributional National Accounts (DINA),” https://wid.world/document/inequality-and-redistribution-in-france-1990-2018-evidence-from-post-tax-distributional-national-accounts-dina-wid-world-working-paper-2018-10/

We define non-fiscal redistribution (sometime referred to as “predistribution”) as the set of policy and legal tools that can affect the primary distribution of income. This includes a large set of policies and institutions, including the education system (particularly the inequality in education spending across social groups), the labor market (especially the changing level of the minimum wage and the various legal rules affecting the role of unions and the bargaining power of workers), and other policies affecting the distribution of primary assets and capabilities (including the health system, the inequality of wealth and inheritance, etc.). Of course the fiscal system is part of non-fiscal redistribution, first because taxes are needed to pay for publicly funded education and other social services, and next because steeply progressive taxation of income and wealth can affect the formation of top end compensation packages and wealth inequality (see e.g. Piketty, Saez and Stantcheva (2014) and Piketty 2014). However we prefer to refer to these policies, rules and mechanisms as “non-fiscal redistribution” because they affect inequality by impacting pretax inequality, as opposed to “fiscal redistribution”, which reduces inequality of disposable income for a given level of pretax inequality.