High-income households have more disposable income after covering their basic expenses. The argument here is that a tax reform would primarily benefit the wealthy, as they are more likely to have disposable income to save. Secondly, if the government reduces the taxation on income, it will decrease government revenue, which will result in a budget deficit, thus reducing public savings. If the government chooses to increase national savings, it will need to consider the balance between private and public savings, and how changes in taxation can affect both. It is important to note that this is a complex issue with numerous variables, and different tax policies can have different effects on different groups of people