>A fairly simple solution. A cap on inherited wealth.

We had a version of that here before estate taxes were re-branded as "Death Taxes" and slashed.
An inheritance tax of at least 90% on estates above a reasonable limit would level the playing field for each new generation and get the deficit down.

The basic problem is the rampant corruption in government - and institutions in general.
Politicians have always been self-serving but it has reached new levels because of the money involved.
My mayor from Hamilton, the mayor of Trenton, and a raft of other New Jersey mayors are in federal prison for taking bribes.
Here's a whopper that has been obvious for years, but no one dared look at it because of this man's power.
http://www.nytimes.com/2015/01/23/nyregion/speaker-of-new-york-assembly-sheldon-silver-is-arrested-in-corruption-case.html

With that kind of money flying around, who will pass an inheritance tax?