I’m not an economist and so I write from a lawyer’s perspective. If you allow taxpayers to dodge a law, the question becomes who decides when the law is applied and when it’s not and by what principle do they make that decision.

If a law is not evenly enforced, it results in a two tier system and favoritism. As a result of the permitted pretense of making sales in country where they are not made, the MNE have a tax deduction which the local businesses do not. This increases the chance of monopoly power.

And relying upon the caveat that I’m not an economist, I’m not certain that there’s a direct relationship between taxation and inflation. The Trump tax cut didn’t seem to prevent inflation. And the logical extension of your argument would be to reduce corporate taxes to reduce inflation. I don’t see any economist proposing that.