Suppose you overheard a mother schooling her child not to work for regular wages, not to save and, by all means—whatever you do, my dear child!—to spend every cent the little one could accumulate on this Earth and die broke. How bizarre, you would think.

Yet that's exactly what the U.S. tax system tells the American people. If you work hard, save thriftily and accumulate a fortune, you'll be taxed constantly and then see up to one-half of your savings go to your distant Uncle Sam instead of the heirs that you...