This, your final paragraph is important and in my opinion correct.

Avoiding inflation and extreme inequity are the only reasons to tax in a modern fiat economy. We could double the deficit for a decade and not cause any meaningful inflation if Congress appropriated spending wisely, keeping in mind real resource and labor availability, not the money. Then trade would become a beneficial source of resources, not an economic drain.

It is very important how the money is used. If it goes to improve productivity then inflation will be minimized. It the money goes to wasteful efforts then inflation will be higher.

If the spending improves infrastructure, education, research and general health good, if it goes to bureaucracy, wars, or wasteful consumption bad.

Wealth should be taxed not labor. Static wealth is the worst. Money needs to flow and at the highest possible velocity. Taxing wealth puts that money back to work. As the velocity of money goes up less money is needed. Static assets are hugely wasteful. A vault full of gold is horrible unless it is collateral for a loan or some other productive activity.

We should stop digging gold out of the ground. It harms the environment, takes labor away from more meaningful endeavors, wastes energy and uses capital the could be put to better uses. We already have more gold than we will ever need and the gold we have is rarely used up, it either sits someplace or is recycled.

TEK