It is absolutely fair for a capital-gains tax to be paid at some point on a capital gain. If a father starts a business with a low basis and then sells it under his control at a gain, he can pay capital-gains tax at that time. If the father passes the business on through inheritance to a next generation without the transaction incurring a tax at the time of passing, it can and should be taxed in the overall gain at some future time. What is so difficult to understand about that?
Or would you rather have a capital-gains tax imposed at the time of the inheritance when and where there are likely inadequate available funds to pay the tax? That would be a good way to destroy a business or at least force a sale or transfer, probably under "fire sale" conditions. It is kind to not tax a transfer at a time of inheritance. It is fair to impose a tax at a time of a sale.
Salt Lake City