That is not true. The capital gains have not been taxed and won't be taxed on death. It is a giant tax free gift upon death.
If your parent dies and they had bought a house for $100,00 and now it is worth $1,100,000. So a capital gain of $1,000,000. If they had sold the house they would have had to pay capital gains on the house, minus an exemption amount ($250,000 for single and $500,000 for married).
But you as the beneficiary get to take that house and immediately sell and pay $0 in capital gains on it. So that tax is actually forgiven on death.
They have been taxed. Real estate each year is taxed on assessed value; stock market gains unless left in a single security indefinitely are taxed on the gain and placed into another security.
To then suggest the money that has been taxed at fair and accepted rates along the way, should now be taxed a large amount bc another family member has it at 20-60% seems out of bound.
The reason this thinking feels ok, is because it applies to a minority of those in society who have accumulated (which is not me - but I'm arguing the counter-point). Imagine if your house was taxed 60-80% upon purchase or sale (same concept).
If your parent dies and they had bought a house for $100,00 and now it is worth $1,100,000. So a capital gain of $1,000,000. If they had sold the house they would have had to pay capital gains on the house, minus an exemption amount ($250,000 for single and $500,000 for married).
But you as the beneficiary get to take that house and immediately sell and pay $0 in capital gains on it. So that tax is actually forgiven on death.