This Forbes article discusses the growing income equality in America. I think that it is not that big of an issue. The problem is with the tax system. Income taxes are stupid, as they tax behavior that should be encouraged. I would much rather see a consumption tax that would truly target the wealthy, and encourage savings and investment.
Some may argue that consumption drives the economy, and thus shouldn't be taxed, but I think people will always consume. Otherwise, what is the point of building all that wealth. It could be balanced with a steep estate tax that encouraged people to spend/donate most of their wealth before death. My guess though, is that Congress will respond to this income inequality by refusing to pass Bush's dividend tax cut. That's too bad because companies have no incentive to pay dividends, which means it is easier to cook their books.
