Tax is one reason, but I think it will be used as a reason to restrict mobility. Geographic mobility is a source of both strength and wealth.

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Hyperinflation induced empire collapse historically regressed the entire civilisation to an earlier era of prosperity/quality of life. Practice makes perfect so if you can use technology to confine that regression to certain sectors of the society why wouldn't you? Even better if you can convince a decent amount of society to adopt hardship voluntarily so you definitely won't have to.