[nybble41]

> It [inflation] is simply an annual cost for having assets

Not all assets, just cash or claims denominated in cash (like loans). Most investments don't lose purchasing power just because you devalue the dollar. The poor are most likely to have the majority of their savings in the form of cash, for various reasons; minimum investment limits, for one, and also investing in general is more efficient when you have more money to invest. Below a certain point, the brokerage fees alone would outweigh any likely annual return. Moreover, in an inflationary economy consumer prices tend to rise faster than wages, so the purchasing power of labor declines. Deflation is just the opposite: Sure, wages are falling as the dollar becomes more valuable, but prices tend to fall even faster, so purchasing power increases.

If you're looking to tax wealth then inflation is not the answer.