It's not clear to me there needs to be any exemption at all on inheritances. It should all be taxable income IMO. Poor people having their inheritances taxed will just get it back later in enhanced government benefits. More in fact since rich people have way larger inheritances to tax.
Another huge loophole is charitable deductions. There's absolutely no reason the government needs to be helping fund individual charity decisions (for anyone, poor or rich). You have billionaires avoiding the majority of taxes they owe by giving money away to their pet charity causes.
Another huge loophole is charitable deductions. There's absolutely no reason the government needs to be helping fund individual charity decisions (for anyone, poor or rich). You have billionaires avoiding the majority of taxes they owe by giving money away to their pet charity causes.