Here's a thought I asked perplexity.ai about ....

 If in the U.S. all political money and progressive taxes on the wealthy were properly collected and tax loopholes closed, then that additional revenue was invested robustly into infrastructure and defense, it could notably help reduce income inequality—though the exact impact would depend on how effectively the funds were used.

Currently, income inequality in the U.S. is extreme, with the richest 1% earning on average 139 times as much as the bottom 20%. The top 10% hold nearly two-thirds of the nation's wealth, while the bottom 50% owns only about 2.5%. Rising income concentration at the very top, due in part to tax cuts and loopholes, has driven the widening gap. Taxes and transfers currently narrow inequality somewhat, but disparities remain staggering.inequality+1

Closing loopholes and increasing taxes on the wealthy could generate hundreds of billions in new revenue annually. Investing this money in infrastructure and defense would create millions of jobs, raising wages for lower and middle-income workers, which has a strong multiplier effect on economic growth. It would also strengthen economic mobility by improving access to critical services and foster broad-based prosperity.forbes+1

However, addressing inequality also requires complementary policies such as strengthening labor unions, improving education, and expanding social safety nets. Infrastructure and defense investments alone would not eliminate income disparities but would substantially reduce the gap by increasing economic opportunity and raising incomes at lower levels.psypost+1

In summary:

• Fixing tax loopholes and increasing taxes on the wealthy would raise significant funds.

• Investing those funds in infrastructure and defense would create jobs and boost wages.

• This would meaningfully shrink income inequality but not eliminate it without other reforms.

• The combined effect would support economic fairness and sustainability over time.statista+3

This approach could be a powerful step toward narrowing America's stark income inequality gap.

1. https://inequality.org/facts/income-inequality/
2. https://www.forbes.com/sites/teresaghilarducci/2025/04/18/7-alarming-facts-about-wealth-inequality-bring-on-the-pitchforks/
3. https://www.nytimes.com/2025/03/31/business/economy/wealth-cash-inequality.html
4. https://www.psypost.org/wealth-inequality-reaches-new-heights-what-the-data-says-about-americas-future/
5. https://www.statista.com/statistics/203961/wealth-distribution-for-the-us/
6. https://www.census.gov/topics/income-poverty/income-inequality.html
7. https://worldpopulationreview.com/country-rankings/gini-coefficient-by-country
8. https://www.pewresearch.org/global/2025/01/09/economic-inequality-seen-as-major-challenge-around-the-world/
9. https://www.stlouisfed.org/community-development/publications/the-state-of-us-household-wealth