It really depends on how efficiently the gov't can spend the tax revenues. The reason most economists think that lower taxes are better for economic activity,

It really depends on how efficiently the gov't can spend the tax revenues. The reason most economists think that lower taxes are better for economic activity, is that usually the same money will be part of multiple transactions in the same amount of time that the government would take to spend it once. ...but you also have to balance the utility of that expenditure. Some forms of spending go towards equipment purchase, which can increase future economic activity - but other forms of spending really are wasteful until the next use of that money. ...but that analysis is nearly impossible an filled with so many judgement calls that no one can convincingly model it.