We study an electoral competition model in which each voter is characterized by income level and non-economic characteristics, and where two vote share maximizing candidates, with fixed non-economic characteristics (differentiated candidates), strategically promise a level of redistribution. We prove existence of a unique Nash equilibrium which is characterized by policy convergence or divergence depending on whether candidates redistribution technologies are symmetric or not. Perhaps more importantly, we show that, independently of whether the equilibrium is convergent or divergent, there are three predominant effects on equilibrium tax rates: the group-size effect (the larger an income group, the larger its influence on equilibrium tax rate), the income effect (poor voters are more responsive to a redistributive transfer) and the within-group homogeneity effect (the degree to which voters of the same income group have similar non-economic characteristics). The latter drags redistribWe would like to thank two anonymous referees and the editor, Nicholas Yannelis, for their recommendations. For valuable feedback we thank Ben Lockwood, Bhaskar Dutta, Gilat Levy, Mattias Polborn, Enriqueta Aragones, Dan Bernhardt, Andrea Mattozzi, Stephane Wolton, Arnaud Dellis, Michael Ting, Odilon Camara, Thomas Palfrey and David Levine, seminar audiences at LSE, NYU, Université de Cergy-Pontoise, University of Bath, and workshop and conference participants in New York, Priorat, Marseille, and the meetings of the APSA (San Francisco), MPSA (Chicago), EEA (Toulouse), EPSA (Edinburgh), ASSET (Aix-en-Provence).