Tax it, don't smoke it.
Debt is a problem created out of thin air by compounded interest.
We have a banking system which is actually a pyramid scheme. Money is created out of thin air when a loan is made. But the moment that loan money is created, MORE money is owed than is in existence! As long as an ever-widening pool of borrowers can be found, the economy grows, creating enough new money to cover the old interest. When new borrowers cannot be found, and old borrowers stop borrowing more, the whole system starts to collapse, forcing the people to wage wars of conquest to loot the needed funds from other unoffending nations.
Which is where we are right now.