That is the question President Obama posed at the Georgetown University Catholic-Evangelical Summit on Overcoming Poverty on May 12. It was a fascinating discussion -- not least because it was a discussion, with the president exchanging views with two scholars and replying to questions by moderator E.J. Dionne of theWashington Post. The president acknowledged the growing awareness of inequality and poverty. He challenged us to see that over decades, we have been disinvesting in shared institutions (like education) that lift people out of poverty. He agreed with the premise of one of the panelists, Robert Putnam, whose new book Our Kids describes the "withdrawing from the commons" occurring across the nation. Where in decades past affluent, working class and poor children might all have attended the same public school, all able to participate in school sports and music programs, today's communities are far more segregated by class as well as race. The well-off are less likely to send their children to a public school, and fewer have the equalizing experience of sports teams and band because strapped school districts now charge hefty fees to participating students, shutting out some struggling families.

The wealthiest one percent of households – those with an annual income of at least $419,000 a year – pay half the tax rate of households earning less than $18,000, a new report by the Institute on Taxation and Economic Policy (ITEP) shows. Who Pays? A Distributional Analysis of the Tax Systems in All 50 States, which examines tax rates at the state and local levels, concludes: the lower one’s income, the higher one’s overall effective (actual) state and local tax rate.

Standard and Poor’s (S&P), a company recognized around the world as an international financial research and credit ratings company, said last week that the American economy would benefit from reduced inequality.