Government spending itself drives inflation. When the government wants to raise money it sells treasuries that are largely purchased by organizations whose money was not in regular circulation. The most obvious example of this is the Federal Reserve who is (or was - they planned to reduce treasury holdings and I have not checked the latest numbers) the largest "private" holder of US treasuries.
The government then takes this money and sends it into circulation, which increases inflation leading to a reduction in spending power of people. It's the same outcome as a tax increase (government has more, people have less), without the negative PR typically associated with raising taxes, particularly this sort of tax which tends to hurt low earners the most as their discretionary income is a far smaller percent of their total income than for high earners, and they also tend to have far less invested in inflation resistant vessels.
The government then takes this money and sends it into circulation, which increases inflation leading to a reduction in spending power of people. It's the same outcome as a tax increase (government has more, people have less), without the negative PR typically associated with raising taxes, particularly this sort of tax which tends to hurt low earners the most as their discretionary income is a far smaller percent of their total income than for high earners, and they also tend to have far less invested in inflation resistant vessels.