Essentially sovereign immunity exists, because there is a collective entity problem and circular liability argument that applies to penalties for the government

Essentially sovereign immunity exists, because there is a collective entity problem and circular liability argument that applies to penalties for the government. Since we fund and elect the government, we are essentially all collectively responsible for the government, and with our tax dollars we are all collectively liable for the government debts. In many cases, it doesn’t make sense to penalize ourselves and thus the government often has sovereign immunity in many cases.