This is a great chart from the Washington Post. Actual data from a liberal media source, go figure?
Original source: Washington Post
It shows a disturbing trend that needs to be addressed for many reasons. But it is a very, very tough problem and I’m not sure how you solve it.
I don’t think more taxes are the answer (though they might be a partial solution). Taxes are the default answer for liberals, but they are an after-the-fact attempt to redress a more fundamental problem which is that too few people are making the lionshare of the money. Why is that? We need to figure it out.
A better solution would be to spread the wealth more widely upfront – to create more high income jobs and to raise the net worth of lots more households. To just throw more taxes into the mix will do little but perpetuate dynamics that have been leading towards a smaller and smaller percentage of people taking in more and more.
In some future post, I’ll try to touch on one of the mechanisms that I see that helps lead to increasing concentration – and it’s something that Democrats strongly favor even though it helps produce the result shown here.