In this episode of Power and Consequences, Gary Gensler and Simon Johnson discuss the US tax system, with a focus on how it developed over 250 years – and where it may go next.

America has long been seen as the land of opportunity in which rising up the income, social, and wealth ladders has been an important aspiration for many people. But why do wealthy folks pay less tax than in some other countries … particularly when they paid significantly more tax relative to their income/wealth in the 1950s and 1960s? When did attitudes and politics change to allow repeated tax cuts for the very rich? Is it sustainable for the wealthiest in American society to have lower average tax rates than people who live on substantially less money?

Could the next turn in American politics be towards reducing taxes for middle income people?