Destroying money is isomorphic to giving that money to the level of government controlling the central bank (with some extra busy-work). The central bank obvio

Destroying money is isomorphic to giving that money to the level of government controlling the central bank (with some extra busy-work). The central bank obviously has the option of simply creating an equal amount of money, and may in some rare cases be forced to do so in order to avoid deflation. Giving that money to the level of government that controls the central bank is probably an improvement for incentive alignment over letting local governments keep it. Destruction just may not be the best way to accomplish that.