Except you don't have to tax low earners! Progressive taxation is the norm in the US; you just need to tax where the wealth lies, and the ways in which it moves.
2. Cost of living rises, wages follow (but not closely enough)
3. Buying power is decreased, but the tax brackets don't change much
4. The lower income groups proceeds to pay more taxes than they "should" while simultaneously being the group that can afford it the least. At the same time, this group is the most affected by inflation, hurting even more.
The money printer hurts everyone. Spinning it up as the expedited solution to every problem for political expedience is how we ended up with an enormous and ever-growing amount of debt.
Who gets taxed only really matters for a specific federal expense if the spending were being covered directly by an increase in taxes. Any money spent on buying up student debt will come from new federal debt without a tax increase or levee to pay for it.
