And that money was buried in the backyard in coffee cans?
No.
It is spent, invested, and otherwise put to use.
The fallacy your blog is promoting is childish: static analysis.
The proven benefit of letting people keep their own money and spend it as they wish does cost the gov some revenue, but it is more than offset by the addded economic activity and resulting taxes.
The private sector is more capable than the public in spending money that actually helps people.
And the moral position of letting people who make money keep more of it is pretty tough to assail.
But hey, if your tax cut/loan back if you think the gov can spend it better than you.
Ed