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Government debt is not the same as household debt. The government, as the issuer of its own currency, has the power to create money. This ability sets it apart from households, businesses, and city or state governments that rely on income and borrowing to finance their spending.

Government debt is a byproduct of government spending. The primary purpose of government spending is to inject money into the economy, creating demand and stimulating economic activity. When the government spends more than it collects in taxes, it runs a deficit and issues debt as a way to accommodate the excess spending.

Taxes are thus a tool to manage inflation. By reducing the amount of money in circulation, taxes help prevent excessive demand that could lead to inflationary pressures.

(Modern Monetary Theory)