"Cutting" is simply removing the dim and dirty top layer of the lacquer, coated with deposits and minor scratches that have built up over time revealing a shinier, new layer underneath. So, to answer your question, yes, it does take the lacquer off, but only a small amount. T-Cut should not be used all the time, as it will end up damaging the lacquer completely, but to keep your paint looking good, use some of the cleaning, polish, and waxing products recommended on the car cleaning section of this forum! Hope that helps!