The key concept is that taxation is unrelated to the government's ability to spend (with fiat currency). They can tax $1T and spend $1T. Or they can tax $0 and

The key concept is that taxation is unrelated to the government's ability to spend (with fiat currency). They can tax $1T and spend $1T. Or they can tax $0 and spend $1T. Government is not constrained from spending whatever amount it likes—except in the spending's effects on money supply, inflation, et c. From that POV, destroying money (or, if you prefer, reducing the rate of increase in the money supply) is exactly what taxation does.