Do Tax Cuts Lead to Economic Growth?

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Yes because whether the increased revenue within the economy goes towards hiring people to handle investments, vacations, paying bills, or school, the money is spent somewhere and jobs are created at some point down the line. It then creates more tax dollars and an increase in revenue to pay off the deficit. Infrastructure is also a valuable quality in growing the economy as long as we don't hand out blank checks with no deadlines.

[barfbag]

It also depends on the state of the economy at the time. In 2003 we saw an immediate rise in the stock market, but in 2001 we were in the middle of a recession and saw more decline. I know 9/11 had to do with it as well. It's not going to get the job done by itself. Infrastructure as I mentioned before helps a lot as long as it's not blank checks for projects without end like the big dig project. Another important factor that goes underestimated is consumer confidence. People have to have confidence to invest and spend their money which we haven't seen in about 15 years.