According to my history book cuts in taxes reduce level of demand for industrial goods. can you explan this?

Tax cuts increase consumption but if the industrial capacity is already sufficient to meet the increased consumer demand it will not provide an incentive to increase investment in new plants and equipment. If you think of industrial goods as inputs in the production of consumer goods it obviouly is not true, so you should ume he means new plant and equipment and see if what he is saying make sense.