The Inheritance Exemption: How a Single Tax Provision Transfers Billions to Dynastic Wealth While Your Paycheck Gets Taxed Before You Touch It
A warehouse worker's wages are taxed the moment they are earned. The heir to a real estate empire worth $50 million can inherit it, sell it immediately, and pay capital gains taxes on precisely nothing. This is not a glitch in the American tax code — it is a feature, one that costs the federal government an estimated $40 to $60 billion per year and transfers that lost revenue directly into the pockets of the wealthiest fraction of one percent. It is called the step-up in basis, and almost nobody