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MMT: Taxation doesn't fund spending.

My response: If the government creates money out of thin air to spend instead of taxing income to spend, then there's too much spending. So, inflation.

MMT: Your assumption about how much spending is too much is (usually) incorrect. It depends what the private sector is doing.

Me: If your income isn't taxed, your marginal propensity to consume is unchanged, and the government creates money out of nothing to spend, then there's too much spending.

There would be accelerating inflation regardless.

Say the taxman comes around and says you owe one ox, two pigs, and four chickens and the King is running a deficit. So, I'll borrow two horses and pay you one chicken in interest every full moon. Without taxation, the government has nothing. How much free money will you sell for?