What most individual do not realize is how these estates have been built tax free. A person buys a parcel of land and holds it for 30 years, a fairly typical investment.  Over the thirty year the value increase and the owner can use the property for collateral. The amount of the loan can be used to  live off of with out having to have a job. The loan in tax free as it is not income.  The interest on the loans is tax deductible over those year.  At the end of thirty years when the owner dies the property goes to the estate.  Unless the property increased to over $ 5.5 million there was never any income tax paid on the increased value or the loans.

While this is but one example it is a factual case in point as this is exactly how the Trump Empire was built using real estate in NYC bough by the family.  The issue is: should some wealth be accumulated tax free as with property appreciation in value, while other wealth from investment income (cash) is taxed as it is accumulated?