How to Really Tackle Income Inequality

Last month, President Obama called income inequality in the United States the “defining challenge of our time.” Unfortunately, the president’s nod to raising the minimum wage and transfer payments offers little hope for the success he seeks. The heated arguments for these moves miss the critical step toward reducing income disparities: economic inclusion, the ability to work and earn in the economy. Bold action is needed — and is best taken through tax reform rather than an expansion of the welfare state.