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> simultaneous reduction in productivity

Hasn't productivity been on the rise the past X years? Shouldn't we have a little slack by this point?

And maybe some profit sharing too.

First-order, yes: Redistributive policies don't have the sum of the country's wealth as their primary optimization objective. Arguably, their goal is closer (but not quite) to the sum of national utility, which follows from diminishing marginal utility.

That being said, there are also claimed and real second-order effects of policies whose first-order economic effect is deadweight-loss. The entirety of government fits this description! To use the most trite and least controversial example, confiscating resources to build roads is redistribution from heavier taxpayers to heavier road users (incl downstream beneficiaries), but the second-order effects of a functional transportation are enough that we don't consider it to "make the country as a whole poorer"

This redistribution already happens with progressive income tax brackets and tax refunds that don’t depend on amounts paid in. This is US tax code today. Might as well have a better safety net in case things go south.