Fiscal policy can defy expectations, taxes may not impact national saving.
The study looked at how people save money when the government changes its spending and taxes. They found that when the government makes big and lasting changes to taxes and transfers, people tend to save more money than expected. This happens more during times when the government is cutting spending rather than increasing it. Surprisingly, having a lot of debt doesn't always lead to this behavior. Also, when the government raises taxes a lot during a big spending cut, people save even more money.