Scott Hodge, president of the Tax Foundation, tells NRO: “This budget should put a stake in the heart of Keynesian economics once and for all. If government spending was the engine for economic growth, the U.S. would now be the economic wonder of the world and the president would not be tying our fortunes to a grab bag of targeted tax credits to ‘create jobs.’”

“The biggest problem facing the ability of the U.S. economy to compete in the global economy is our high corporate tax rate,” Hodge argues, “now second highest among industrialized countries to Japan. Rather than lower the rate, the president is proposing $209 billion in tax increases on U.S. companies trying to compete abroad. Not only is the U.S. corporate tax rate out of step with the rest of the world, but the administration is out of step with the realities of global business today.”

Hodge adds: “Ironically, the president said he wants to promote more exports. What is he expecting? That U.S. companies will just make stuff here and not develop supply chains, sales offices, or marketing efforts abroad? Heaven forbid they do because they will be rewarded with higher taxes if the administration gets its way.”