I don't think increasing the Cutter line's damage is the right solution.
The main problem with the Cutter line is its knockback. It pushes enemies out of range, causing you to miss a large portion of your follow-up attacks.
Instead of more damage, I think it would be better to either increase its attack range or reduce the knockback. That would make the weapon more consistent without simply inflating its damage.
Totally in favor, the best use for it is for cornered enemies, that is not always an option.