Well lets start by seeing if we agree it is an issue. I would say it is. Our country has been measurable "better" when income inequality is lower. We, at this point, are near historic highs in inequality. This imbalance is bad for capitalism, innovation, societal health, almost every metric I can think of. Do we agree that this is an issue?
Actually I am not 100% sure. I could see how it is bad for the economy, having massive inequality like you said. The problem is it doesn't seem right to me for the government to seize people's assets because they made too much.
I think a good step towards a stronger middle class is to encourage businesses to grow and hire more. The millions and millions of people right now on food stamps, assistance, etc. need jobs. It seems like redistributing wealth from the top to the bottom is a very temporary fix.
@Teaparty1 - Not entirely. Look, we, the liberals, were pushing for single-payer. We will get there. That would be a HUGE thing for private companies. They would be completely removed from question of health care. It has always been a unnecessary burden to connect healthcare and employment.
Lets say we did tax higher. The top of the scale is out of whack with the top of income. So, if we were to do that, say we could afford to provide an investment in education (investment is the right word too, not "freebe"). We provide all our citizens with higher education that they are capable of achieving. That is one hell of a good way to help our entire country and entire populous.
When it comes down to it, there's gotta be a reason why the US had such an explosive economic and militarily growth in our short history. We have a high standard of living also. It wasn't the government that made it grow, and it wasn't by taking away peoples money
Entrepreneurship is harmed (made much more difficult) in this hyper unequal environment. Innovation happens from the ground up. Read the article I linked to, most will dismiss what I or any other liberal will say about it. You should hear it from the uber-capitalists who see this as a huge issue too.
In the end, we can tie all of this back to willpower. I consider willpower to be the strongest and most fortunate human trait. We have a horrible education system, that was perpetrated by our illustrious liberals. Our education system is a complete liberal indoctrination, and it raises people to feel dependent on government. Dependency and sympathy are the worst human traits. Income inequality will always occur, and to use legislation to combat it would be a direct violation of the inalienable right to property. Our middle class is shrinking drastically. We should lower taxes all around, cut off all useless government spending on non-necessities, and then create a more rewarding education system. Also, you state income inequality. In every nation, there is income inequality. One man makes 150,000 and another makes 125,000 - that is income inequality. On the other hand, there is wealth disparity, where few control most, and most control few. That is the overall outcome of Capitalism, and it should stay that way, for in division and distribution of capital there is an overall weakness. We would end this problem if we removed most liberals from office, lowered taxes and created a flat tax, abolish or at least make a federal minimum wage, and then allow people to do their business. We have so much legislation that makes it hard to work here. Remove all that legislation, and the middle class will come back.