The gap between the rich and the poor is the highest it has ever been since 1929.
From the above graphs (albeit from 2001), you can see that 1% of the country occupy almost half the pie, while 80% are forced to fight over the last tenth of it.
Is this disparity in the distribution of our dollar fair? Is it sustainable? Should it be regulated?
While I agree that hard workers should be rewarded accordingly, I do feel that something has to give here. We can't continue to walk-by the homeless individuals sleeping on the street on our way to the office every morning. We also can't continue paying undeserving CEO's of large companies both huge salaries and wealthbuilding stock options.
What's my big idea?
Set an annual cap for each income source per household.
It's true that the wealthy invest and build their riches strategically over time. Since that's the case, most brilliant and well-diversified individuals won't be impacted tremendously by this change. Some will just have to take less of a salary or earn less in dividends from that one single source.
Where would all the excess funds go?
The surplus would become Government money. And I don't mean this in an "increased regulation" way. These funds would be treated separately to help increase jobs in the public sector. More teachers; better education programs; more technology incubators; more charitable organizations - All in all, MORE JOBS!
Rewards For the Rich
And those that reach their cap? They wouldn't have to pay any income taxes on that specific income source.
Thanks for the charitable donation, Warren Buffet! The rest of the country appreciates your benevolence!