Comment by mathiasben

The underlying cause of this whole issue is the changes in tax policy instated in the Tax Reform Act of 1986, previously income was taxed at higher rates unless deductions were utilized which forced those earnings back into the economy creating jobs funding research, etc.. As it's become easier to retain more earnings there's little incentive not to optimize an entire corporation solely with the purpose of generating returns at the expense of all else. To resolve this USA should consider reverting back to the Internal Revenue Act of 1954. Under this rule set income over $400K/yr was taxed at 90% or it was reinvested in the economy. Do this and this inequality issue will sort itself out in the same time frame it took to do the damage.