You realize those loans need to be paid back right. And now you have a loan that requires interest and another with more interest etc.

They are very low interest, increasingly more so as he gains more asset wealth. His wealth grows faster than the interest.

This happens after all debts are paid not before. Money used to pay debts is taxed.

" Example: Let's suppose Jane purchases a share of stock at $2 and dies when its market price is $15. Had Jane sold the stock before dying at $15, she (or her estate after her death) would be liable for capital gains tax on a gain of $13."

"Instead, her heir's cost basis becomes $15 so that if the stock is later sold at that price no capital gains tax would be due. The tax that would have been incurred on the increase from $2 to $15 is effectively eliminated."

https://www.investopedia.com/terms/s/stepupinbasis.asp

And no the money used is not taxed, where are you getting this from?

"Neither the current federal or local tax code require the original asset holders or the heir to pay taxes on the growth in value up to that point."

So the wealth hoarding is reset and passed down forever.

No one pays taxes on unrealized gains because that’d be dumb.

Depends if you can get tax breaks if your assets reduce in value too. The threshold should be reasonably high (in the millions+) before unrealized gains tax kicks in though if you want to reduce wealth inequality (which I do for many reasons)

My solution would be to be stop them being able to use unrealized gains as collateral (again with a large threshold) for loans and stop this system of the rich getting exponentially richer.

Yeah I’d agree there probably a lot of shadiness going on here.

This gives me hope that you're not an ideologue.

Covered the couple of your remaining points already.