The top 1% own about 25% of assets in the US, and of that the vast majority are likely illiquid and non-cash. If you assume that the top 1% hypothetically hold 10% of the cash, then draining their cash accounts to 0 and burning it would be equivalent (not counting money velocity) to everyone else taking a 10% haircut. If you attempt to account for the velocity of money, that would likely only be a small single-digit percentage. The CPI is higher than that, and many lower- and middle-class families are seeing a much bigger loss in purchasing power thanks to increases in the prices of food, fuel, and housing.
Moreover, the last 2 years have been an experiment in exactly what you are proposing - using monetary policy to control inflation while using fiscal policy to attempt to prevent it from hitting most people. It has not worked, and it will not work in the future. In fact, the policy has had the opposite effect that you probably want: real wealth is increasingly concentrated in the hands of the wealthy, and inflation is largely concentrated in products purchased by the poor.
No, I’m not.
> A dollar held by a startup or a poor person is much more inflationary than a dollar held by a big company or rich person
Rich people have to lose more money in aggregate for the same inflation effect as poorer people losing the same amount of money, sure.
But that's fine, because its a lot less bad for rich people to lose a lot of money than people whose ability to meet basic needs is marginal to lose a little money, so, yes, my statement that the distributional goal should be compression when the broad goals is anti-inflationary was exactly what I intended, even including consideration of velocity of money in the domestic economy.