The form of the money is completely irrelevant. What's relevant is that resources are being allocated to one sector of the economy that does less to raise the s

The form of the money is completely irrelevant. What's relevant is that resources are being allocated to one sector of the economy that does less to raise the standard of living than other sectors would likely be able to do with those same resources. Therefore the government, in this instance, is preventing the standard of living from increasing as much as it would have otherwise, which happens to hurt real people. Ensuring that the resources they take from the private sector are used better than they otherwise would have been should be one of the primary concerns any government has when it decides to meddle in an economy because the consequences can negatively impact a lot of people.