How money really works
DIAGRAMS & DOLLARS: modern money illustrated (Part 1)
DIAGRAMS & DOLLARS: modern money illustrated (Part 2)
The government creates money; it does not need to collect taxes or borrow money from the private sector (or other countries) to pay for what it wants. The only way for people in the private sector to get money is for the government to give it to them; the government can create money and either and buy stuff with it or give it to people. Taxes are used to give value to money and to drain excess money from the private sector to control inflation. Government "debt" is just a mechanism to move large amounts of money out of circulation to control inflation, and government "debt" is just net private financial wealth.