It would be in a sense, because that money is otherwise mostly hoarded by the wealthy, whose spending would look the same whether or not they are taxed. If money is saved and not spent, it is not really part of the economy in this sense.

But if the money is transferred to others and spent on additional goods & services that is when it increases demand and raises prices.

It wouldn't be inflationary. What it would do is to make the government's inflation policy have effects immediately, instead of delayed by a decade.

That would happen for whatever direction the government policy is pushing.

Ah yes, the old "we should actually be grateful to the ultra-rich, because by not spending all the financial resources they accumulate, they save us from inflation!"