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The GOP offers tax cuts to the wealthy, inducing a higher debt-load for the US.

The wealthy turn around and buy US government bonds.

The rest of us pay the wealthy bond interest and pay taxes against the debt accrued by offering tax cuts to the wealthy so they could buy US bonds.

The government borrows by selling treasury bonds, then the Fed buys them and keeps them on their books, and the Treasury gets US currency in exchange.

The Fed can also buy other assets besides T-bills and use them to back new issuance of US currency notes.

You can read the federal reserve act at Frb.gov

You are absolutely right, and you have discovered Modern Money Theory. https://www.youtube.com/watch?v=tEiNLmg2tYA