The effect of taxes and public transfers in reducing regional differences in income inequality is particularly evident in the United Kingdom, Germany, Belgium and Italy. The median reduction in the regional Gini when taking into account taxes and transfers is 30% across the 28 countries, the highest effect being observed for Finnish regions (regional Gini coefficients for disposable income 48% lower in median than regional Gini indexes for market income). Each point in the panel represents a region.