Yes. Cutting taxes has the potential to increase revenue, but not always; the major fact behind it is when the taxation rate is higher than the optimal level. That's really the only major case in which revenue increases when you decrease taxes. The revenue won't magically go up the more you lower taxes.
Spending is also an issue. If you want to spur the economy and raise revenue, you need to cut spending on pork and other frivolous projects, as well sa cut down on military action. All of that is very expensive and counterproductive to increasing revenue.
You also cannot confuse cause and correlation in this situation. Just because taxes go up, does not mean they are going up because of X or Y reason presented. I am reading through the rest of the thread right now, though to see.
There is some interesting information to look at. For example, according to this source [the wall street journal online]: there are some problems people are not looking into when they blindly "hoorah" in favour of taxcut plans.
Wall Street Online
Centre for Budget and Policy
1. For instance:
Do Tax Cuts Pay for Themselves?. No, they don't. Other's pay for them later. According to whitehouse reports, the Treasury indicates that "
Treasury long-run analyses of the effects of President Bush’s tax cuts “may ultimately” raise total national output of goods and services by 0.7%." but not everyone thinks this is going to be enough.
Incidentally, The Center for Budget Policies and Priorities comments:
Reading the fine print in government taxation programmes is a prerequisite. The government often thinks in the short-term and does what sounds good now instead of thinking later, especially with Bush at the helm of the ship of state.
