Can someone explain to me why the inflation tax is not preferred to normal taxation.?

Question

This is in relation to an essay on "the optimum rate of inflation" and regards why the argument by Edmund Phelps (that the inflation tax would be less distortionary than other forms of taxation) is claimed to be wrong.

Please cite a source or something

Answer 1

Normal Taxation for the most part is FLAT. Meaning it will remain at a level and then get increased or decreased by lawmakers.

For example, a tax would be 8% and may get raised to 9% or reduced back to 8%.

An inflation tax would be crazy, because it would continue to rise with inflation.

The tax could start at 8% and then rise to 50% or even 65% would greatly hinder the economy.