The rest go to the children of Americans who by Gatesian standards are not rich at all. A middle-class father who lived frugally and managed his investments wisely could easily find himself, at the end of his life, with assets exceeding a million dollars. A confiscatory Death Tax of 55 percent won't put a crimp in the lifestyle of Bill Gates's kids. But if I may adapt the title of a bestselling book, it will indeed hurt the children of the Millionaire Next Door who seeks to pass along the fruit of his labor. Beyond that there is a profound spiritual issue.
Inheritance is the glue that binds the generations.
Just as marriage holds society together within a given generation, inheritance extends the social fabric through time.