I don't think it's immoral but I do think it encourages 'avoidance' and the threshold should be very high. VAT is a more immoral tax because it is not progressive in any sense.
I don't understand why so many people get so exercised about inheritance tax when it only impacts on 4% of the population (that's the recipients I guess, as the dead people would no longer be part of the population). The thing about the money already having been taxed is arguable anyway - the dead person isn't being taxed, it's the recipient, and quite often the inheritance will have come from property value appreciation that has not been taxed anyway. VAT on the other hand is paid by all of us, is regressive, and is very definitely a tax on already-taxed income - but no one seems to bat an eyelid.
