This text argues that the redistribution policies in Serbia, both during the period of socialism (until the 1990s) and in the neoliberal age (after the year 2000), divided the population into first- and second-class citizens, which remains the case. The scope of redistribution is only ostensibly broad, because the government processes more than 40% of GDP through the budget. However, unlike other European countries, the level of inequality in Serbia is not reduced through government intervention. The neoliberal assertion that efficiency is more important than equality because an uninhibited tide of private initiative and entrepreneurship will eventually lift all boats has proven to be false. The book analyses the main aspects of neoliberal redistribution policies after 2000: the tax system, pension system, and family transfer system. Neoliberal reforms have led to a large increase in the Gini coefficient, but also to a dramatic reduction of total disposable income for the bottom 50% of the population. The paper sketches alternative tax, pension, and family transfer policies, which could dramatically reduce inequality, while simultaneously having a positive impact on economic efficiency.