Don't fall into all the hype of "inheritance tax" killing the average Joe. I think what you're referring to is the fact that an inheritance is also considered income (I think. Tell me if I'm wrong), and subject to an immediate income tax in a higher bracket. %20 or more of the inheritance is still a large chunk. Many people could confuse this as an inheritance tax I think.

Talking about it being double taxing is also incorrect. Double taxing is when you are charged a tax on money already spent on taxes. Every time money changes hands it gets taxed. That's the only way it works. Determining which points in the cycle it gets taxed is the hard part. Both your employer AND you are taxed on the income you earn. That wage is paid by the businesse's income, which was taxed when they earned it also. It's taxed yet again as it's spent by you. Then again as the receiver of the cash earns it as income.