. ▁The ▁poor est ▁ 2 0 % ▁of ▁tax ▁fil ers ▁experienced ▁a ▁ 6 % ▁reduction ▁in ▁income ▁while ▁the ▁top ▁ 0 . 1 ▁percent ▁of ▁tax ▁fil ers ▁saw ▁their ▁income ▁almost ▁double . ▁Tax ▁fil ers ▁in ▁the ▁middle ▁of ▁the ▁income ▁distribution ▁experienced ▁about ▁a ▁ 1 0 % ▁increase ▁in ▁income . ▁Also ▁during ▁this ▁period , ▁the ▁proportion ▁of ▁income ▁from ▁capital ▁increased ▁for ▁the ▁top ▁ 0 . 1 ▁percent ▁from ▁ 6 4 % ▁to ▁ 7 0 %. ▁ ▁Transfer ▁pay ments ▁Transfer ▁pay ments ▁refer ▁to ▁pay ments ▁to ▁persons ▁such ▁as ▁social ▁security , ▁un emp loyment ▁compens ation , ▁or ▁w elf are . ▁ ▁C BO ▁reported ▁in ▁November ▁ 2 0 1 4 ▁that : ▁" G overn ment ▁trans fers ▁reduce ▁income ▁inequality ▁because ▁the ▁trans fers ▁received ▁by ▁lower - in come ▁households ▁are ▁larger ▁relative ▁to ▁their ▁market ▁income ▁than ▁are ▁the ▁trans fers ▁received ▁by ▁higher - in come ▁households . ▁Federal ▁tax es ▁also ▁reduce ▁income ▁inequality , ▁because ▁the ▁tax es ▁paid ▁by ▁higher - in come ▁households ▁are ▁larger ▁relative ▁to ▁their ▁before - tax ▁income ▁than ▁are ▁the ▁tax es ▁paid ▁by ▁lower - in come ▁households . ▁The ▁equal izing ▁effects ▁of ▁government ▁trans fers ▁were ▁significantly ▁larger ▁than ▁the ▁equal izing ▁effects ▁of ▁federal ▁tax es ▁from ▁ 1 9 7 9 ▁to ▁ 2 0 1 1 . ▁ ▁C BO ▁also ▁reported ▁that ▁less ▁progress