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That one always kills me because from the viewpoint of the one inheriting the money, the money hasn't been taxed yet. If you were to treat it like income from a lottery, everyone would agree that taxing it makes sense.
I think this viewpoint assumes that everyone lives independently. A lot of families function as units and they all live and work together. If you inherit post-tax income from a family member, then the money has been fairly taxed regardless of your viewpoint.
Why should you have to pay the government to inherit your late-parent's car or business? What happens if you can't afford to pay the tax?
For the low income families this can make or break a person's way of life, for the 1% it is a way of hoarding the world's wealth and maintain power.
I'm talking specifically about the double taxation point.
Its clear inheritance taxes must be highly progressive or else you are penalizing things like family homes etc. But even still reverse mortgages, business loans, stocks.... All these financial instruments exist.
I agree it needs to be a highly progressive tax. I'm generalizing because we're discussing international tax law and I don't know the income cutoffs for different countries.
Double taxation is a real concern only if the inheritance tax affects very low income individuals. A family who shares a car or a struggling family restaurant might have a very difficult time if they are forced to pay an unexpected tax bill.