I suspect I will make some flack for this comment. I'm not arguing big govt. Rather, I'm pointing out that in a world where a small number of individuals CAN produce the majority of wealth, we need a better system for redistribution to avoid a dystopian society.
It's been tried: http://en.wikipedia.org/wiki/French_Revolution
In the US, you try for a wealth distribution anything approaching what you're discussing and what you'll actually end up with is 1% of the population under a constant barrage of sustained small arms fire. Parents aren't going quietly watch their children starve.
Incidentally, I agree wholeheartedly that we need a better redistribution system.
This isn't true. It's one of (if not the best) system for distributing wealth. Anybody can start their own company (look at all the startups on HN alone) with relatively little money and generate wealth for themselves.