Today the median household net worth (mhnw) is about $192 K. The average, or mean, household net worth (ahnw) is about $1500 K.

I have been leery of a wealth tax, since most peoples “wealth” is dependent on what others “say” they will pay for a property, if it were for sale. It is unrealized gains. But, once you die, your gains can be realized. This is when the taxes should kick in.

Using the mhnw as a baseline, when you die your estate can distribute up to 100 times the mhnw tax-free. In our example above, the first $19.2 M is estate tax-free. From 100 mnhw to 1000 mnhw, your estate is taxed at 50% and beyond 1000 mnhw your estate is taxed at 90%.

So, someone leaving an estate of $10 M will not have any estate taxes. Someone with an estate of $29.2 will have $5 M in estate taxes, leaving the heirs $24.2 M to divvy up, And the heirs of an estate of one Billion Dollars will have a $813.6 M estate tax bill. They earned it!