I am trying to show that the function $f(x) = 2\pi+x-\tan^{-1}x$ is contractive but has no fixed points. Finally I wish to conclude that it does not contradict the contraction mapping theorem.
$f$ is contractive:
by the mean value theorem we have:
\begin{align} |f(x)-f(y)| =& |f'(x)(x-y)| \end{align} It is sufficient to show that $f'(x) < 1$: \begin{align} f'(x) =& 1 - \frac{1}{1+x^2} \\ =& \frac{x^2}{1+x^2} \end{align}
$f$ has no fixed points:
Suppose $f$ does have a fixed point. Then $\lim_{x_n\to\infty} = x:$ \begin{align} x_{n+1} =& 2\pi + x_n - \arctan(x_n) \\ \lim x_{n+1} =& \lim 2\pi + x_n - \arctan(x_n) \\ x =& 2\pi +x - \arctan(x) \\ 0 =& 2\pi - \arctan(x) \end{align} This is a contradiction as $\frac{-\pi}{2} < \arctan(x) < \frac{\pi}{2}$ for all $x$. Thus $f$ does not have a fixed point.
Now I am stuck on how to show that this does not contradict the contraction mapping theorem which says:
Let $C$ be a closed subset of the real line. If $F$ is a contractive mapping of $C$ into $C$ then $F$ has a unique fixed point. Morever, this fixed point is the limit of every sequence obtained from $x_n+1 = F(x)$ starting with $x_0\in C$.
For $f(x) = 2\pi+x-\arctan(x)$ the domain is all reals and so is the codomain. I don't see another premise that is violated by $f(x)$.
Thanks for all the help.
Jonathan Y.'s answer is correct. I wanted to elaborate on his answer in a space longer than a comment, so I hope you'll pardon my bandwagoning.
It seems the OP's confusion lies with their understanding of the statement of the contraction mapping principle. Let's make sure we're on the same foot.
Let $(X,d)$ be a complete metric space. We say $f:X\to X$ is a contraction if there exists a constant $1>c>0$ so that $d(f(x),f(y))\le cd(x,y)$ for all $x,y\in X$.
Alternatively, provided the OP is comfortable with the notion of a supremum, we may say that $f:X\to X$ is a contraction if and only if
It is a valuable exercise to you to verify that these two conditions are in fact equal. Now, this second formulation better illustrates the following point: the OP did not show that $f$ is a contraction. OP showed that $f$ is a weak contraction or, in other words, a short map.
Let's switch back to the example at hand. OP verified the following fact: for every pair $x,y$ there is a number $x<c_{xy}<y$, depending on $x,y$ so that
Consequently,
$\begin{align*}\mathcal{L}_f&=\sup\left\{\frac{{|f(x)-f(y)|}}{|{x-y}|}: x,y\in \mathbb{R}, x\ne y\right\}\\&= \sup\left\{1-\frac{1}{|1+c_{xy}^2|}:x,y\in \mathbb{R}, x<y\right\}\\ &\ge \sup\left\{1-\frac{1}{|1+c_{xy}^2|}:x,y\in \mathbb{R}, 0<x<y\right\}\qquad \text{As}\{x,y: 0<x<y\}\subseteq \{x,y: x<y\}\\&\ge \sup\left\{1-\frac{1}{|1+x^2|}:0<x\right\} \qquad \text{Since }0<x<c_{xy}\text{ and }1/(1+x^2)\text{ decreases on }\mathbb{R}^+.\\ &=1\end{align*}$
So $1\le \mathcal{L}_f$, and so $f$ is not a contraction.