S&P: More Education Needed to Close Wealth Gap

The Standard & Poor's rating agency reports the rising wealth gap in the United States is slowing economic growth, but changing the tax code to narrow the gap isn't the answer.

S&P stated that higher taxes on the wealthy removes incentives for people to work and causes businesses to hire fewer employees.

The group estimates the economy would grow by half a percent per year if the average American worker had completed one more year of school.

The S&P said the economy will likely see more "Boom-Bust cycles," and will grow about 2.5 percent a year for the next decade - down from an earlier estimate of 2.8 percent.