Tax cuts are a pivotal fiscal policy tool used by governments to stimulate consumer spending and catalyze economic recovery during downturns. This systematic literature review (SLR) examines how tax cuts have influenced consumer spending globally between 2008 and 2024, a period marked by significant economic disruptions, including the 2008 financial crisis and the COVID-19 pandemic. Following PRISMA guidelines, the review synthesized 16 peer-reviewed studies and institutional reports from Google Scholar, focusing on income taxes, sales taxes, and their impact on macroeconomic indicators like GDP growth, consumer confidence, and inflation. Findings reveal that tax cuts generally increase disposable income, boosting consumer spending, particularly among low- and middle-income households with higher marginal propensities to consume (MPC). However, the effect diminishes for high-income households, who tend to save rather than spend additional income. Permanent tax cuts yield more sustained consumption increases than temporary rebates, and their effectiveness is amplified during recessions. Macroeconomic context, policy design, and consumer expectations further mediate outcomes. The study concludes that targeted, well-communicated tax cuts can significantly stimulate consumption if aligned with economic conditions and household needs. Recommendations include prioritizing low- and middle-income households, ensuring long-term tax reductions, and integrating complementary measures to enhance consumer confidence.