This working paper should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s). In particular, the contents of this publication can in no way be taken to reflect the views of the European Union. This paper examines the effects of benefit and tax reforms on the distribution of incomes of non-elderly individuals in Europe and in the United States both before and after the GR. We aim to place recent policy responses in context of both the broader trends in redistribution patterns observed since the 1980s, and the immediate crisis-related challenges, including a much greater need for government support, and large and rapidly growing government debt. Analysis of historical household income data confirms the common finding that redistribution reduces income inequalities by much less in the US than in much of Europe.