You raise one valid point. This does not address inequality of income. It does, however, eliminate unemployment and poverty--at any level of total output. Included in that is eliminating all taxes, which hurt people who aren't rich more than they hurt people who are.

The injustice in the economy is not differences in income, but exploitation--people using others for their own monetary aggrandizement. The democratically distributed income could be expanded to include every employee of any business or government. That would end exploitation but would still not involve redistribution or any limit on income/wealth.