If you tax a good that's in high demand, you price the same people out of the market as the price increase was pricing out of the market. It's just another way to ration scarce goods.

Also, if M2 is falling, it is falling despite the USG deficit. If the gov't spends, but the money supply falls, the spending isn't creating inflation.

We are suffering supply-shock inflation. Raising interest rates is a poor choice because it suppresses investment in supply by raising the cost of capital. But allowing the inflation is also disruptive. The right approach, I would argue, is to raise rates and subsidize investment to offset the hit to capital costs.