That's not correct. If I flag haejin (or anybody else) his rewards are directly reduced by the exact amount of my vote's worth.

Upvoting someone else rewards that person at the expense of everybody else. Downvoting someone rewards everybody else at the expense of that single individual.

Proof: When @thing-2 upvoted you, haejin's rewards remained the same...because the .25 was spread across all current claimants on Steem for the day. If it were a downvote for haejin, haejin's rewards would be .25 less.