When we are forced to hand over our money we are robbed of our ability to Christian giving.
True charity is a voluntary giving out of love from one person, and acceptance from another who is needy in the same spirit of love. When these conditions are met, God will offer graces to both souls that will bring them closer to Him. Taking from one person and giving to another is a perversion of this, a satanic caricature and not only leads to no blessings in this world, but as you state deprives the giver of the resources to perform genuine charity.