An income tax, and in particular a corporate income tax, is mostly a tax on profit. You're redistributing monies that would have been received as profit, as welfare. This is a popular idea because "the rich/corporations are too rich and don't need billions in profits etc".
The end result of robbing people of the profit that they earn from their efforts is to get less effort, and in particular, less investment. This results in a decline in the growth rate of the economy, or even a contraction in the size of the economy (if the rate of capital formation falls below the rate of capital depreciation - if this happens, then Molyneaux's statement will become correct, as there will be inflation due to lower supply of goods relative to currency units).
The last 40 years have overseen a massive increase in the scale of forcible income redistribution, and thus serve as a good natural experiment in welfare economics. The result of massively increasing the scale of forcible redistribution will likely be the same as the effect we've seen over the last 40 years: slowing productivity growth, and consequently wage growth stagnation.
Of course, people believe what they want to believe, so they ignore the lessons of history and double down on a failed ideology that is the root cause of almost all social ills.