I think you are falling for Zeno's paradox. There exists an equilibrium with a constant percentage rate of tax redistributed as a lump sum that will not affect

I think you are falling for Zeno's paradox. There exists an equilibrium with a constant percentage rate of tax redistributed as a lump sum that will not affect inflation at all. If the lump sum is larger than the tax revenue, there will be inflation, and if it is smaller there will be deflation. Just look at the total money supply. Prices in general are not directly affected because this is a redistribution of income.