Second, if federal budget surpluses are achieved, in part, through higher taxes, those higher taxes reduce households' disposable personal income. As discussed in section 1, disposable personal income is the after-tax personal income (including government transfer payments) available for households' consumption and saving.
If federal budget surpluses are achieved, through higher taxes, those higher taxes reduce households' disposable personal income. Disposable personal income is the after-tax personal income available for households' consumption and saving.