There are people who propose a 100% inheritance tax. They say that people should earn what they can earn themselves, not be given gifts that give them an advantage other people do not. When rich parents give their children millions of dollars it is unfair for poor people, because the rich have an advantage over the poor. Therefore, there must be a 100% inheritance tax that takes away this money from the rich so that their children should earn their money just like everyone else. That is what is fair.
A problem with such a law is how will this law actually be enforced? Let us say that an old man knows he is going to die soon. So instead of writing a will to give his money as inheritance he simply gives out his money to his children as he is still alive. That way when he dies his children already received all the money. The complete inheritance tax just makes it a minor inconvenience for rich people to give out their money. Thus, the goal of preventing the children from inheriting millions from their parents is not achieved. It will still happen. The only way to prevent the rich from giving money to their children is to regulate the way rich people can spend their money. I am sure I do not have to explain why such a system is a totalitarian system. So such a egalitarian goal is incompatible with a free society.
But the method of enforcing such a law is not even the main problem with it. The major problem with such a goal is that it is impossible to make the world fair. Some people are born extraordinary smart. Some people are born really dumb. The smart ones have it easier to learn than the dumb ones. It is certainly unfair that there are smart people and dumb people. What must the state do? Must the state keep the smart people out of universities because it is unfair for the dumb people? Or must the state accept exactly 1/2 smart and 1/2 dumb people because that is fair? Or consider really beautiful people. Some people are ugly. The beautiful people would be able to find physically attractive people to sleep with, the ugly would have a big difficultly here. That is unfair. Or consider healthy people. Some people hardly ever get sick. Some are constantly stricken with disease. Is that fair? What must the state do? Must the state now forcefully inject into healthy people diseases so that they can be sick too because that is fair?
There is nothing fair about this world whatsoever. The amount of money people have is actually one of the more fairer things in the world. Because rich ugly sick people would give up their money to look attractive and be healthy. They do not value their money as much as beautiful people value their beauty or healthy people value their health.
It is certainly true that rich children will have it easier in this world, but it is also true that children from intelligent partents would also have it easier in this world. Must the state prevent professors from educating their children because it is unfair for children who did not come from intelligent families? Some kids are taught to play the violin by their parents and have a valuable skill as a gift from their parents. Most kids do not have this talent. That is unfair. But must the state prevent parents from educating the kids from playing the violin because it is unfair for other children?
Money, just like everything else in the world, is unfair. But it is probably the most fair thing out of all unfair things that exist. Because a person with a few million dollars will blow it in his lifetime if he is a dumb person, and will have nothing to pass down to his kids. Money, unlike health and beauty and talents, is temporary unfairness.
It is highly inconsistent for people who complain about the rich giving money to their children as unfair and ignore all the other injustices that take place in this pathetic world on a daily basis.
Here is a video about inheritance (Milton Friedman): Here.