But, one need not be a card-carrying utopian to be alarmed at such a highly imperfect distribution of income. One does not have to advocate abolishing all differences in order to see that differences of too great a magnitude are not good for anyone in the long run. At the very least, then, the new income distribution data should serve as a baseline against which to gauge the years to come. Yes, we should. And if that knowledge tells us that things are headed in the wrong direction, we have to act on that knowledge.
Income distribution is no abstract economic concept.
Any number of policy choices spring from understanding income distribution. For example, as New Jersey contemplates changes in the state and local tax system, it is important to explore the contribution this system makes to inequality. Cutting regressive taxes ought to take precedence over cutting progressive taxes. At a time when the easy answer to questions about taxes is to say that raising them has inherently negative economic consequences, there is a need for fuller debate. And the distribution of income needs to be a part of that debate.