The problem being that "the more industrious" have benefited greatly from income redistribution, however, for the first time there is not enough middle to absorb the brunt of that distribution and now the wealthy are suddenly left holding the bag. The Earned Income Tax Credit, Child and Dependent Care Credit, Free school lunch programs, daycare assistance programs, Medicaid programs, CHIP, etc. are all government programs to increase the supply of low wage workers. They were intentionally designed to get people into low paying jobs, which benefits the wealthy.
The entire government sponsored idea was that downward wage pressure would create downward price pressure and keep consumption high because there would be no deadweight loss with supply side boosts... However, it doesn't work. We have much more capital mobility today than we ever have before and when we make capital readily available to the rich, their capital efficiency just goes down. It turns out that companies are good at generating the capital needed for profitable projects and decreasing the cost of capital just makes projects that are fundamentally unacceptable, seem acceptable but at the cost of all market efficiency. Essentially, the firms that are the best at doing things lose to companies who are much worse at doing things because access to capital has become more important than specialize and trade.
I might find lower taxes on the wealthiest more palatable had our government not stepped into the labor market. However, since we did, we now have a major problem. We have a workforce that is significantly depressed through the bottom 90%. Because of automation and globalization there is no way to fix the situation. We can't simply pull the plug and let things correct as the government has now concentrated the wealth to the extent that the capital mobility we have today inhibits correction. While I don't love wealth redistribution, it is probably the only way out of this mess.
