Lets start with myth and fact. First off the Repugnican party which is the so called Conservitive party has not even championed tax cuts or smaller Gov since the Reagan days. Neither Bush or Dole actually attempted real tax cuts. Bush sr with his famous read my lips lie not only did not cut taxes he raised them. He also expanded Gov. Bush jr has made a big deal about cosmetic tax cuts but has made no real effort.
I did a little digging and we could cut at least %25 of our budget with a few simple steps. Ones that did not reduce services by the Gov at all. Did not affect anyone on the Gov payroll except areas cut at all. Except for Congress I'd save a 100 mill with a pay cut for Congress :) A pay cut based on thier net worth. If they were in the top %5 of the nation net worth they would be paid the mean avg pay of a worker in the US. Theoretically this would be incentive to improve such pay. Realistically all it would do is save a few dollars in the budget. More of a symbolic gesture than anything.
Cutting taxes is not anywhere near as difficult as it seems.
As for benifits of cutting taxes. You are talking about micro tax cuts. Lets talk REAL tax cuts. Like %25 of the budget translated to a %15 per person tax cut for most people not in the extroidenary wealthy range. For them it'd be more like a %5 tax cut as they pay so little anyway. At least to the Gov, they pay billions to lawyers and accountants to avoid paying multi-billions in taxes. If we create a system that encourages cheating and makes it cheaper to pay an accountant than the Gov of course people are going to do that.
This is exactly the kind of system we have created.
It is also this system that makes small tax cuts meaningless. Small tax cuts often increase the complexity of the tax code. Anything that increases the complexity of the already arcane tax codes is to defeat the tax cut at it's birth.
Think of Gov spending as an expense for the American people. It is alot like the Utilities bills in the avg American's budget. We need the Gov. Without it we'd be invaded by other nations, without it our food would not be safe to eat our water unsafe to drink. Without some Gov the streets would be ruled by warlords. Gov is a necessary evil. Just like your electric bill the more you spend on the Gov the less money you have to spend on other things. Less real goods that you can purchase. Think about it, if you had free electricity for one year. Even if your bill was only $200 a month, a low bill for even apt dwellers today in the South. That is $2400 a year extra money in your pocket. Taxes are the same way. If you had a %10 real tax cut and you made $50k a year combined. That is an extra $5,000 in your pocket. A significant sum. Even for somebody making $20k a year that $2,000 would be a BIG thing.
Some people make the arguement that the Gov makes jobs. It does not. The Gov is an expense. It is a leach on the economy. Utilitiy depts make jobs in the same sense the Gov does. The higher the cost of electricty the more linemen can be hired. No utility company has enough employees for the job it's doing. The trouble is these jobs produce nothing. There is no tangible good produced by this job. It is a pure comodity. The foundation of every economy is the jobs that produce real goods. Especially jobs that bring money into the country. Manufacturing whether it be a tangible good or an information product such as computer software. Those are jobs that produce other jobs. For each person producing a real good they also produced 2-3 jobs for people to service them. No not THAT kind of service LOL. I'm talking about people to sell them a soda at the movie, people to wait on thier table at a resteraunt, to watch thier children, to dry clean thier clothes or to ring up thier purchases at a store.
Jobs that result in exported products are the most valuable to an economy. If the exports bring in more than it costs to pay them then money flows into the nation and the result trickles down to all in the nation.
Next are jobs that produce products within the country and who service tourists. Both of these produce other jobs. The producer of goods creates hard currancy in the form of durable goods. Those in the tourism industry bring in money to the nation. Toursim is notoriously unreliable and the influx is a tiny trickle, but it IS money coming in. So at worst those in these industries do not harm the economy. They keep it moving.
Service industry jobs have only one positive value to the economy. That is to make manufacturing faster and more efficient. All service industry jobs are otherwise a drain on the economy. They produce nothing tangible. They add nothing to the economy unless they service tourists. Every penny spent on a service is money that is gone. Yes it continues to circulate and people can become quite wealthy off of servicing the produtive portion of the economy. However it cannot stand on it's own. Without the producers there is no money to circulate. No demand for services. People in the service industry require an influx of money to exist. A person who is broke cannot buy an icecream. Nor can ice cream vendors continiously buy each other's ice cream. The money to buy the ice cream has to come from a productive job of some sort. If the production end fails eventually the cost of the ice cream will increase proportionally to the inability of people to buy it. As such the need for ice cream vendors will decrease in a steady spiral until Ice cream vendors become a very expensive luxory.
The Gov is an Ice cream vendor. The ice cream might be roads, it might be inspections on food or it might be the someone who flies into a hurricane to check windspeed. The net result is that without the taxpayer the Gov cannot exist. Money is finite and nor is any world economy today a closed loop. There is always a drain. Imports drain money away. Money sent overseas drain money away. Disasters, theft and graft drain money away. So just like a family budget the income has to exceed the bills or eventually the ability to purchase services will fade and economic collapse is sure to result from long term inability to meet the bills. For a family it might be losing the house, losing a car. It might be the inability to replace clothing, to even buy food. Depends on how severe the deficiet is. There are compensations that can be made for a time. Luxories can be discarded, the spending can be made more efficient. Borrowing can be used as a temporary fix but tends to agrvate the problem in the long term. The simple fact is that income MUST exceed bills in the long term.
Taxation is a bill. It is an expense. It cannot stimulate the economy. Every dollar spent by the Gov requires at least another dollar to collect. So there is net loss just in the collection. Few Gov orgs produce anything. NASA, the Military, some scientific expenditures help the economy and produce inovations. Those are very rare exceptions. Gov spending is otherwise a complete drain on the economy. It is cost without benifit. Gov created jobs are just ice cream vendors in the above analogy. They dispense a service or distribute a good such as roadways. They can at best improve the efficiency of production but without production the economy will eventually bleed itself dry.
So in answer to your question, an organization which states that tax cuts cost the Gov money is to describe the reversal of gravity. What might happen is that you can fly a plane at the right speed and altitude and temporarily relieve gravity. What you cannot do is defy the laws of physics with current technology. If taxation is low enough and the economy strong enough taxation can aid an economy. The key is how strong the economy is to start with. Can it afford those losses for the services provided? To continue with the analogy, can your budget afford the higher electric bills if they produce a cooler house. It is normally a luxory but the higher electric bills might be for an extra freezer to buy in bulk thus saving more money long term than the associated extra electric costs. So it's not impossible to benifit the economy with taxes just very difficult to do so. Job creation is an illusion with taxation.
More importantly taxation is a direct affront to freedom of choice. The more the Gov takes in taxes the less money you have to spend on what you want to buy. It is a direct correlation. This economic tyranny can be very devestating to causes and become a literal intrustion into personal liberty. Industries may even fail completely if taxation forces the purchasers to concentrate strictly on essentials. Bowling is an example. It is in serious decline because it is primarily a low income and middle class recreational activity. Bowling allies around the nation have revamped in response to attempt to appeal to upper middle class and wealth patrons. Even the name is changed in an attempt to change the clientele. The reason being that the poor and whats left of the middle class just do not have the kind of money needed to bowl any more. It has become a luxory that is essentially out of reach by the lowering standard of living and taxation faced by poor and middle class. The cost of doing business has increased far beyond the ablity of the patrons to pay for it. So Bowling is attempting to appeal to wealthier clients who can still afford luxory activities. Movie theatres, resteraunts and many other service industries which previously catered to the poor are in the same straits. Who industries are on the verge of collapse.
What it amounts too is the inability of a person to spend money as they see fit. It also creates a dependancy on the Gov. For example the working poor often have to suppliment thier diet with charitable and Gov food stamps. Often this will change thier diet stripping them of dietary freedoms. It also often reduces the quality of thier nutrition and safety of the food eaten. The old saying beggers can't be choosers is quite true. When you have to beg for a good or service your choice is gone. Without choice quality tends to suffer. The larger the taxation the more dependent people will be on the Gov. The more dependent the less choice. Political organizations and charities that Gov does not subsidize can fail after taxation thresholds encompass enough people. Recreational activities, services that are not Gov sanctioned and sponsored again will fail. Literally you may be stripped of your car in the future if the Gov thinks that you do not deserve to drive by economic sanctions against our own people. Taxes are a form of economic sanctions. Just as tarrifs are used to influence external Govs taxes are used to influence peoples lives.