[southernmissouri2007]

I have heard Democrats say that higher taxes on the Rich/Wealthy means that the Wealthy business owners will kee his money and or profits inside his businesseses and that will create Jobs could anyone explain how this works with the corporate tax I have heard Thom Hartmann say this ?

http://www.thomhartmann.com/blog/2010/1 ... jobsreally

[Negotiator]

Jobs can only be created if there is both increased demand and the ability to invest.

Third world countries usually suffer from a lack of the ability to invest.

First world countries usually suffer from a lack of demand.

Lowering taxes for the rich means increased ability to invest.

Raising taxes fro the rich would however mean that the general public had more money, which could then for example be used for better public schools, free medical aid for everyone, free public traffic, higher pensions etc. All these things lead to increased demand.

About economic growth, the economy of fully developed countries cannot grow faster than technology progresses. Thats why China can still grow very fast, while the three leading countries USA, Japan and Germany no longer do so. Once China will have reached the same productivity, it wont have faster growth than those three countries, either.