I would not try using shredded paper as a mulch because much of it would blow into my neighbor's yards.

The Bottom Line
 Newspaper and cardboard sheet mulches can be effective for annual beds if they are properly
maintained.
 Sheet mulches can prevent water movement and gas exchange if they are too wet or too dry.
 Use site-appropriate mulch materials. Permanent, ornamental landscapes, non-maintained sites,
and restoration areas are not appropriate locations for newspaper and cardboard sheet mulches.

Here is a link that might be useful: The Myth of Paper-Based Sheet Mulch

Shredded is a different application than sheet mulching. I see no harm in the addition of shredded paper in the soil other than maybe the ink toxicity, if it exists. Whether the ink is bad or good is what the OP is asking. That, I don't know. If the ink is good I see no harm in it though.
I have never used paper as a mulch or additive. It seems like a lot of work for a little organic gain. My paper goes in the recycle bin.

Will still pack down like grass clippings and have other characteristics of paper.

PDX east wind will unpack it, unless it has transformed to paper mache'.

Thanx for the responses. I will weigh them all before acting, although I'm leaning against, just was hoping I could get something beneficial after the shredding machine.

Into the recycle bin, it looks like.

shredded paper makes an excellent addition to a compost pile, and especially worm bins. Its a good source of carbon when leaves or straw isn't available.

I can see it used in a compost pile. I used some shedded paper once for a banana plant. I could see something wasn't right with the plant so I dug it out.

The dirt and paper it was in was so hot and saturated it freaked me out probably as much as the poor banana plant! It responded well after I changed the soil.

goofyisgreen .....

Google "The Dark Side of Lasagna Gardening"

In regards to paper use in the garden, and what it means to recycling.

Bboy I said I didn't see any harm in the addition to shredded paper IN the soil, not ON it. It can be spaded in, for instance.