The wealth gap matters

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A poll by the FT shows that:

Strong majorities in five European countries – ranging from 76 per cent in Spain to 87 per cent in Germany – consider that income inequality is too great.

But 78 per cent of respondents in the US, traditionally seen as more tolerant of income inequality, also think the gap is too wide.

Tax is firmly on the agenda this week in the UK and elsewhere. But before David Cameron say too loudly that Britain has reached the:

limits of acceptable taxation

he should reflect on the fact that may be true for some, but not of all. And tax cits for the wealthy really are not a good idea right now, as the 10p fiasco has shown.