The tax either has an impact or it doesn't. If it has a large fiscal impact, it must effect some type of business. Of course, the easy way around this is to call the bluff of the anti-taxers by taxing only withdrawls from inherited firms and not the inheritences themselves. Treat such withdrawls as normal income - and allow the normal exemption for sales of a firm to an ESOP. The floor for inheritance can also be significantly lowered to the floor for income taxes under tax reform. I suggest $150,000 per year for families. If an hier and his spouse make $120,000 a year and cash out $29,000, then under the plan I propose, they would make no income tax. If they cash out $50,000 from the inheritance, family income goes to $170,000 and they pay taxes on the last $20,000. If you use the Clinton era rates - adjusted for the existence of the Business Income Tax and VAT that I propose elsewhere, the rate would be 6%, making the tax an onerous $1,200. Of course, any spending would be taxed at a fairly high rate, and if they are drawing out of an inheritance they may not be saving any money - which is all the better for the economy.