I would also argue that inheriting large wealth is not a problem. At some point the money had to be earned. If the inheritors do not use it wisely it will be gone within a few generations.
Imagine a farmer working his entire life on his farm. Now that he is reaching the end of his lifespan he wants his children to benefit from his work. He built the house and everything himself.
Why should the government take a chunk out of that? One might argue that the children do not work and therefore this "unearned" income is unfair because it's not possible to choose whether you are born into a wealthy family.
However it is both earned by the work of the father and already taxed by the government through his income.
By the time the father dies the children are likely already 40 to 50 years old but they benefited from his little wealth while he was still alive. The inheritance tax does not affect this. It only discourages using the inheritance efficiently over multiple generations.
Imagine a farmer working his entire life on his farm. Now that he is reaching the end of his lifespan he wants his children to benefit from his work. He built the house and everything himself.
Why should the government take a chunk out of that? One might argue that the children do not work and therefore this "unearned" income is unfair because it's not possible to choose whether you are born into a wealthy family.
However it is both earned by the work of the father and already taxed by the government through his income.
By the time the father dies the children are likely already 40 to 50 years old but they benefited from his little wealth while he was still alive. The inheritance tax does not affect this. It only discourages using the inheritance efficiently over multiple generations.