I don't mean the US model of capitalism particularly, I just used its tax base calculation as an example (and either way, doesn't seem like you addressed the situation of what happens when you redistribute funds). I mean the modern system of free trade, regulated markets of supply and demand, comparative advantage, and so on, how most modern countries' economies function today. For example, India after opening up their markets in the 80s (having previously followed the communist Soviet model) has seen massive growth in terms of the wealth of their population.

Inflation occurs when the supply of money flowing in the economy grows. Bezos' wealth for example is tied up into Amazon, it's not liquid. But suddenly if you gave everyone and extra 10k a year from that money? They'll spend it, causing prices to increase. That's inflation. Not to mention converting Amazon stock to cash would cause the price to crater. The way to get around that would be to directly issue the stock to the government or to the people, as some countries do. However, again, people could simply sell the stock to use the money as cash, again causing inflation. Norway and Alaska have a decent model, a sovereign wealth fund that issues dividends to its populace, but again, it can cause inflation.