We've all heard about that terrible death tax, hated by the super rich across America.  This is the inheritance tax where Uncle Sam is supposed to get 40% of the estate that is passed onto heirs.  The reality is this tax is not paid unless someone has a very poor financial planner and attorney.  There is a loophole in the law which allows billionaires and their heirs to pay nothing in taxes on inheritance.

The popularity of the shelter, known as the Walton grantor retained annuity trust, or GRAT, shows how easy it is for the wealthy to bypass estate and gift taxes.

The technique to bypass estate and gift taxes has cost the United States over $100 billion in revenues since 2000.  Of course only the super-rich can afford such a labyrinth of tax shelters.  Regular people don't pay taxes on inheritance.  It is only estates exceeding $5,250,000 in 2013.  Yet these people don't pay either, unless they stuffed it under the mattress and did not use the GRAT loophole of course.

So, once again the laws do not apply for the super rich.  It is no mere coincidence these people are major poliical campaign donors either.

The estate tax is a tax in name only.  Meanwhile economic inequality continues to grow along with our new social class of the super rich and inherited wealth.