The top 5%? I think you need to examine which income levels constitute the top 5% before you make statements like that. Many of us are in the top 5% and aren't by any stretch "rich."
Can you just summarize what you think needs to be done exactly? I agree that a shrinking middle class is a huge problem, but I'm not sure I recall a succinct list of actions from you which would preserve the middle class.
Without putting too much time into it, briefly:
I would address the problem of
Global Labor Arbitrage which dramatically increases the supply of labor relative to the demand for labor. (An increased supply of labor relative to capital or the demand for labor means lower wages. It's also a merger between our nation's economy and standard of living and that of the third world.) This means increasing tariffs and adopting a national industrial policy to bring back jobs that were shipped overseas (foreign production for domestic consumption). It also means deporting millions of illegal immigrants and imposing a moratorium on legal immigration or at least reducing legal immigration to a trickle. It also means ending or severely curtailing the foreign work visa programs such as the H-1B ("My job was bombed by the H-1B") and L-1 visas.
I would fix our nation's disastrous and inefficient health care system and replace it with real socialized medicine. It's currently consuming 17.6% of our nation's GDP and in-spite of that our businesses and economy are still heavily burdened by insurance benefit concerns.
I would increase taxes on the top 5% with higher taxes for the mega rich. That revenue could be used to fund health insurance, needed social welfare programs, and infrastructure.
I would end the War on Drugs, legalizing all drugs. This would reduce money wasted on the criminal justice system. At the very least, I would fully legalize and tax marijuana.
I would reduce the size of our military and military budget and avoid becoming entangled in foreign boondoggles such as the Iraq War.
I would also reform our higher education system such that our nation and populace no longer wastes money on higher education for which there is not a real-world demand. In reality, only a small percentage of jobs (perhaps 10-15%) actually require or make use of a four year college degree. So, I would find a way to reinstate some form of employment market feedback to college graduate production, such as allowing student loans to be dischargeable in bankruptcy. I would also reform or curtail the federal student loan program. If higher education has an economic value, let private lenders fund it and let them be subject to bankruptcy protections just like for any other investment. I would also support a "clawback" policy that would hold colleges and universities accountable for higher education that does not provide a return-on-investment by forcing them to pay back a portion of the amounts of student loans discharged in bankruptcy. (This would probably reduce the number of excess colleges and universities by a significant amount.) What I'm proposing would result in a radical reform of higher education in this country. However, such reform is needed and the expense, waste, and inefficiency in this area is part of what's hurting the middle class.
---Not the proposals you expected to hear from someone that you might (in a knee-jerk fashion) typecast as an evil communist?