Taxation provides the government with leverage to sustain the debts it incurs yeah. To creditors foreign and domestic.

Problem in the Us at moment is that the high interest rates means that the outstanding federal debt payments baloons to unsustainable levels( >1 Trln) which is why Orange Donny is putting pressure on Powell to lower the interest or get kicked out. Ofc Powell is one of the usual crookee pieces of shit that changes policy according to whom is in the WH.

Sitting with huge debt payments on the lons fromthe past would be a ball n chain around the current admin so obvs they want to lighten the load.

But anyway... some money is created at the Fed printers, but most at private banks through fractional reserve lending, which is why banks want to lend ...its their bread n butter. Customers that dont borrow are deadbeats to them, worse than customers that dont pay off on loans.