Banks create credit in the system that is labeled "reserves". That credit spends like money to the casual observer but it is limited in that it cannot be "net" saved, pay a tax obligation, or net retire itself. The credit/reserve system varies with the economy, but it is generally 8-10 times what is created by the government. It is always balanced by the debt principle held by lenders.

The Federal Reserve loans reserves to banks, or they borrow from other banks as needed to cover the loans they issue. Because the Fed shares a balance sheet with Treasury, any profits it makes go to the same place taxes and bond proceeds go, to reduce the national debt.

When a worker pays tax, he is paying a percentage of what he earns - not all of it.

While it is true that workers don't pay all of their income to taxes, the percentage of their earnings that goes to reduce the national debt is far greater than most realize and can be considered taxation. Very few working-class people can say that they have a net positive balance between earnings and debt and the more the government farms out its services to private sector firms the more skewed against the working class the economy becomes.

When the economy is viewed in macro a "balanced" budget means that every dime created by Congress is negated by taxation, leaving no payment in the private sector for the resources and labor government consumes. This forces the people to finance their economy with bank debt and pay interest for that. You can only "grow" your way out of such bad policy for so long before it catches up in the form of default and recession.