It's also a form of theft, via inflation, though some might justify this by saying the inflation is lawful. However, just because something is lawful doesn't make it moral. Many immoral acts have been committed by the state throughout human history, though they might have been deemed "justified" and "lawful" at the time.
Exactly, it is legal, but it is not moral. Sometimes I think that is the whole purpose of secularization, to separate the State from morality, in order to do what it does.