Author here, simulation 16 shows that money printing, and tax have common effects. The state can replace one with another. Here the 65% tax is replaced with 10% tax plus inflation, i.e., giving new money to public servants. The new money creation decreases the value of money owned by producing workers.

We could even remove the tax entirely, and still support the 3 public servants. To be convinced you can look at each unit transaction and see that all resource are accounted for.

Another way to look at it, is that the QoL of producing workers is lower than if there was no public servants. Every resource a public servant has, is bought from a worker at some point, whether the money for the purchase comes from taxation or inflation.