Person dies, wealth gets inherited at new cost basis, heirs pay off loans with new (higher) cost basis, tax revenue isn’t collected.

At least that’s the model as I understand it.

> tax revenue isn’t collected.

If you completely ignore estate taxes, this would be true.

Yeah you're probably right - my tax knowledge of this area is not great since I haven't had to care about it.

I think that kicks in after $20M?

I assume this means the banks are giving > 40 years loans? Isn't inheritance tax fairly high? A quick search says 40% federal, with around 20% state.

IIRC estate tax doesn't kick in until after ~$20M? I don't really know much about this particular area of tax law though so I wouldn't rely on my comments.