Edit.. I didn't see where you cut the magneto wire, I agree with AJ, from my understanding this wire takes out any safety switches to engine etc..
I had a problem similar to yours, but didn't cut the magneto wire as you have done, my problem was dirty ignition switch to wiring harness connector. I cleaned as best I could switch was easy to clean with a brush, and contact cleaner, plugged, and unplugged the ignition switch to the wiring harness, and used Vaseline after everything was clean for some protection from oxidation.
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