I'm trying to make a cookie that tastes buttery and keeps it's cutout shape. Used baking soda, they spread and were nice and fluffy and thick. Used just baking powder, they kept their shape, but were flat and too crisp. Would it better to use both?

The reason your cookies are spreading is because of the butter. If you replaced some of the fat with shortening they wouldn't spread as much.

But if you want a good sugar cookie recipe for cutting out try this one:

2 1/2 cups unbleached all-purpose flour (12 1/2 ounces)
3/4 cup superfine sugar (5 1/2 ounces)
1/4 teaspoon table salt
16 tablespoons unsalted butter , ( 2 sticks) cut into sixteen 1/2-inch pieces, at cool room temperature (about 65 degrees)
2 teaspoons vanilla extract
2 tablespoons cream cheese , at room temperature
Glaze
1 tablespoon cream cheese , at room temperature
3 tablespoons milk
1 1/2 cups confectioners' sugar (6 ounces)


1. FOR THE COOKIES: In bowl of standing mixer fitted with flat beater, mix flour, sugar, and salt on low speed until combined, about 5 seconds. With mixer running on low, add butter 1 piece at a time; continue to mix until mixture looks crumbly and slightly wet, about 1 minute longer. Add vanilla and cream cheese and mix on low until dough just begins to form large clumps, about 30 seconds.

2. Remove bowl from mixer; knead dough by hand in bowl for 2 to 3 turns to form large cohesive mass. Turn out dough onto countertop; divide in half, pat into two 4-inch disks, wrap each in plastic, and refrigerate until they begin to firm up, 20 to 30 minutes. (Can be refrigerated up to 3 days or frozen up to 2 weeks; defrost in refrigerator before using.)

3. Adjust oven rack to middle position; heat oven to 375 degrees. Roll out 1 dough disk to even 1/8-inch thickness between 2 large sheets parchment paper; slide rolled dough on parchment onto baking sheet and chill until firm, about 10 minutes. Meanwhile, repeat with second disk.

4. Working with first portion of rolled dough, cut into desired shapes using cookie cutter(s) and place shapes on parchment-lined baking sheet, spacing them about 1 1/2 inches apart. Bake until light golden brown, about 10 minutes, rotating baking sheet halfway through baking time. Repeat with second portion of rolled dough. (Dough scraps can be patted together, chilled, and re-rolled once.) Cool cookies on wire rack to room temperature.

5. FOR THE GLAZE: Whisk cream cheese and 2 tablespoons milk in medium bowl until combined and no lumps remain. Whisk in confectioners' sugar until smooth, adding remaining milk as needed until glaze is thin enough to spread easily. Drizzle or spread scant teaspoon glaze with back of spoon onto each cooled cookie, as desired.

Yes your got it, suggestion if 1 tea bakeing soda use 1/2 tea bakeing soda, plus 1 tea bakeing powder.

follow a recipe and use real butter, handle dough as little as possible. I use icecream scoopers instead of my hands. Never use margerine,too much water content. Smart Start is a good replacement if you want to use a margerine, the cheap stuff has trans-fats that clog arteries. So unless you're making them for your ex-husban and his new girlfriend use butter.
By the way are you creaming the butter and sugar until creamy and adding the room temp eggs one at a time?flavoring? then stiring in the dry ingredients? Making a ball,cutting into rolls and chilling them?