Inflation creates short term thinking (spend don’t save). The other downside is inflation is quite regressive.<p>Personally if we are going to dream about changing the tax system then Georgism is the way to go [0], but good luck getting political support.<p>[0]. <a href="https://en.wikipedia.org/wiki/Georgism" rel="nofollow">https://en.wikipedia.org/wiki/Georgism</a>
Taxes are how the government makes a sovereign money worth something. You need <i>dollars</i> because you need to pay taxes in <i>dollars</i>.<p>You might want to read some Modern Monetary Theory: <a href="http://neweconomicperspectives.org/modern-monetary-theory-primer.html" rel="nofollow">http://neweconomicperspectives.org/modern-monetary-theory-pr...</a>
The tax system has to be very complicated so:<p>1. Consultancies, accounting firms and senior government make huge amounts facilitating it<p>2. Enables evasion by the rich and punishment of the poor!<p>3. We don't realise how much tax we're paying on stuff