Why do you assume that I haven't paid attention? Do you really think that the continuation of the Bush tax break in the USA to the already rich did anything but make them richer? If you do then you will probably never reach the end of this next few lines, cause you will be a denier.
Wealth tends to pool at the top, it doesn't tend to trickle down. It doesn't tend to distribute. Wealth attracts more wealth. If you want a fast way to get money into an economy you give it to poor people who have a hundred different things that they HAVE to spend it on. That money gets to work straight away by buying something, usually physical item or service, a bill or some food or a TV or some electricity or some rent. This contributes to the wider society straight away.
When the rich people get more money they save it or invest it, and by invest I mean that they buy things that will make THEM richer, they don't invest in the community they invest in themselves.
The odd philanthropist will buck the trend and invest in some good projects and will be held up as a poster child to show that the system works and that this is how the system is supposed to work and if only those damn lefties with their taxes would shut up everything would be fine.
What is the premiss of this whole argument? That I am supposed to give a rats ass that some multi-millionaire cannot build upon their wealth in India because they have to pay tax?
Angels can make 20 to 30 times there investment back from the initial loan (I admit that the average number is smaller than that but Angels don't play for average) even if the number is closer to the 2-3 times their investment, think of those numbers for a while and see if you think there should be some sort of Taxation involved.
In the poor places that sort of return on investment is usually only available to Loan Sharks and drug dealers.
So at the end if you could be bothered to read all of this and I haven't been modded out of existence they will still invest, because if they don't their pile of cash can only get smaller, even if they have to pay some tax, a little tax, they will still invest. They will still invest in India and China and USA and the UK and the Ukraine and any place that they can make money.
As I have said before it is what they do, it will not change!

I don't think I actually said anything in my post that does not fit with what you have written above, aside from that I am not particularly sanguine, i just understand that business will squeal and holler like a stuck pig when it sees the bottom line being affected. I mainly turn down the volume of the hyperbole in my head from 11 to something a bit more reasonable.
You are right, tax more get less of something, I agree. But you also agree have to agree that investment will not stop. It may be at a reduced level but it will continue.
But I notice that you you also said "drive it (investment) underground", what you failed to mention is that business will evolve and investment opportunities will change.
I think what we are seeing a small group of extremely wealthy individuals tantrum because the rules got changed.
Are we going to see the death of investment in India? No
Are we going to see some changes in how investments are made and who invests there? Maybe.
Will the Indian government raise more taxes from the increasing disproportionately wealthy upper class? Probably not.
in the end there will be loop holes and there will be exemptions and things will go on!
They always do!

That is the point I was making.

oooooooooooo! why did I not see that one coming! (SLAPS HEAD).

My point is that when new taxes are announced business leaders ALWAYS claim that it is the end of the world as we know it. I have never seen any other reaction. DOOM followed by GLOOM followed by the END OF THE WORLD AS WE KNOW IT!
Sometimes they get their way, sometimes they don't, but I have never seen the collapse of all things.
Things change, laws change, taxes change all the time. Business and in particular Angel investors will still invest because that is how they make money. They won't suddenly stop investing in India because of the imposition of a tax on investment, but they sure as hell will say that they will in order to try to influence the government to change it's policy.
IF this change takes place and Angel investor stop throwing money around then come back and I we can talk then. I think that if investors see an new opportunities growing in India they will be off like a ferret down a drainpipe, because at the end of the day that is what they do, they use money to make money and as long as they get their returns they don't care.

everyone will carry on investing like they did before and pay tax on their investments. It may cause some people to be more selective about who/what they invest in but I figure with a growth market like India things will carry on, innovators will still innovate and investors will still find ways to pay little or no tax.

Careful now!

Yeah, we can talk again when my daughter can get the top job!

I had a great time fraking all through 1984! http://en.wikipedia.org/wiki/Frak!

Yes, but what is that in football fields?

What about Google, it never fails to provide.

They have to put the spoil from all those tunnels someplace!

Your experience may be valid with the caveat that if we do nothing then the bill will pass.
If we try and do something that will bring the bill to the attention of the sleeping masses.
What would Paul Revere do?

It's easy to find cases that exempt you from having a reasonable argument. One finds "mentalists" in every environment, at least he is in prison. I find NZ to be a safe place to walk, my front and back house doors are regularly left open and my child can play in the garden without being harassed. We moved here from Scotland where there is violence, drug and gang related problems as well as the religious bigotry and class structures. Not saying that NZ doesn't have it's problems but where I live it is better than where I used to live.

don't you mean "Oct, Nov. best months for writing buggy code"? I would think it would be the "Oct, Nov. worst months for writing non-buggy code".