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This is pretty basic terminology that’s been in use for quite a few years. The government has a certain amount ($$) they have to pay to keep the country running each year, agreed? (Defense, Social Security, etc. etc. - in other words, liabilities). And as we know from basic accounting, the balance sheet shows assets and liabilities, right? What is the government’s assets? The money it is owed by the tax payers (the government’s income).
So the government has a certain amount of debt that has to be paid every year; it takes in a certain amount of income every year. So if the government cuts it’s income - the amount of tax it collects, AND they aren’t able (or unwilling) to cut the amount of debts it has to pay, then they have to figure out a way to pay for the tax cut (the amount of income to the government that has been reduced) and still be able to pay its debts.
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