I agree. If you've just inherited $25 million, it would still be better for you and for society for you to get a job--even a job paying $50k a year if that is all you could get.
But...are you going to be incentivized to do so?
If you care about somebody not wanting to make $50k because they'd lose a $10k subsidy, how much MORE should you care about a $25 million subsidy disincentivizing somebody to improve themselves and contribute to society as a productive citizen.
> Trust fund babies are far more rare than people making ~$50k
That just means that imposing enough inheritance tax to incentivize them to work wouldn't effect enough people to have a negative effect on the economy. And lets not forget, the person being taxed is dead. They will feel absolutely no ill effects from the tax. Its all upside.
Not Trolling here. I advocate a 100% inheritance tax, the proceeds of which should be dedicated to education, nutrition, and housing for the next generation, to achieve the following goal: Equal ability should be given equal opportunity to succeed.
And just giving free money to one kid and nothing to another is the absolute diametrical opposite of that.