S&P: Income Inequality Weighs on State Tax Revenues

One of the flashpoints in the debate over the widening income gap has been answering the question, “So what?” What is the real impact of separating wages for the wealthiest Americans and everyone else? Standard and Poor’s Ratings Services offered a new answer Monday, arguing that a rising share of income to the wealthiest Americans has resulted in less tax revenue than would otherwise be the case, making it harder for states to fund all of their services.