Tax incentives for small businesses are a crucial topic in IELTS Writing Task 2 essays. This subject frequently appears in exams, reflecting its relevance in today’s economic landscape. Based on past trends and current economic discussions, we can expect this theme to remain prominent in future IELTS tests. Let’s explore a specific question related to this topic and analyze sample essays at different band levels.

Some people think that governments should provide financial assistance to small businesses, while others believe that this kind of support is not the government’s responsibility. Discuss both views and give your own opinion.

Analyzing the Question

This question requires candidates to discuss two contrasting views on government support for small businesses, specifically through financial assistance. The task involves:

1. Explaining arguments for government financial support
2. Presenting reasons against government involvement
3. Providing a personal opinion on the issue

It’s crucial to address all parts of the question and maintain a balanced discussion before stating your own view.

Sample Essay 1 (Band 8-9)

The role of government in supporting small businesses through financial means is a contentious issue. While some advocate for such assistance, others argue it falls outside governmental responsibilities. This essay will examine both perspectives before offering a personal stance.

Proponents of government financial aid for small businesses argue that such support is vital for economic growth and job creation. Small enterprises often struggle to secure funding from traditional sources like banks, hindering their ability to expand or even survive. Government assistance, whether through grants, low-interest loans, or tax incentives, can provide the necessary capital for these businesses to thrive. This, in turn, can stimulate local economies, increase employment, and foster innovation. Moreover, during economic crises, such as the recent global pandemic, government support can be crucial in preventing widespread business closures and maintaining economic stability.

On the other hand, opponents contend that providing financial assistance to small businesses is not the government’s responsibility. They argue that the free market should determine which businesses succeed or fail, and government intervention distorts this natural process. Critics also point out that such programs can be costly for taxpayers and may lead to dependency on government aid. Furthermore, there are concerns about fairness and the potential for misuse or corruption in the distribution of funds.

In my opinion, while the free market should generally guide business success, there is a strong case for measured government support, especially in challenging economic times. The effects of tax policies on investment strategies can be significant, and well-designed incentives can foster a more robust and diverse economy. However, this support should be carefully targeted, transparent, and aimed at creating long-term economic resilience rather than short-term fixes.

In conclusion, while there are valid arguments on both sides, I believe that strategic government financial assistance to small businesses can play a crucial role in economic development and stability. The key lies in implementing such support judiciously, ensuring it complements rather than replaces private sector initiatives.

Tax incentives driving small business growth

Sample Essay 2 (Band 6-7)

The question of whether governments should give money to help small businesses is a topic that many people have different opinions about. In this essay, I will talk about both sides of this issue and give my own thoughts.

Some people think it’s a good idea for the government to help small businesses with money. They say that small businesses are important for the economy because they create jobs and help local communities. When small businesses get financial help, they can grow bigger and hire more people. This is especially important when the economy is not doing well, like during a pandemic. The government’s help can stop many businesses from closing down.

However, other people disagree with this idea. They believe that it’s not the government’s job to help businesses with money. They think that businesses should succeed or fail on their own, based on how good they are. These people worry that giving money to businesses can be unfair and might waste taxpayers’ money. They also think that some businesses might start to depend too much on government help instead of trying to succeed on their own.

How taxes influence financial decision-making is an important factor to consider in this debate. In my opinion, I think the government should help small businesses, but only in a careful way. They should not give money to every business, but focus on helping businesses that have a good chance of success and can help the economy grow. This help should be given in a fair way and should have clear rules.

To conclude, while there are good points on both sides, I believe that some government help for small businesses can be good for the economy. But this help needs to be given in a smart and fair way.

Sample Essay 3 (Band 5-6)

Nowadays, many people talk about if government should give money to small businesses or not. Some people say yes, some people say no. I will write about both ideas and give my opinion.

First, some people think government should help small businesses with money. They say small businesses are good for country. Small businesses make jobs for people and help local areas. When government gives money, small businesses can buy things they need and grow bigger. This is very important when economy is bad, like now with Covid-19.

But other people don’t agree. They think government should not give money to businesses. They say businesses should make money by themselves. If government gives money, it’s not fair for other businesses. Also, they worry that some businesses will always want government money and not try hard enough.

I think government should help small businesses, but not too much. They should give money to businesses that are good and can help country. But they should be careful and make sure the money is used well.

In conclusion, I believe government help for small businesses can be good, but it must be done carefully. Government should think about how to help businesses in the best way for everyone.

Comparing government support methods for small businesses

Explanation of Band Scores

Band 8-9 Essay:

• Fully addresses all parts of the task with a well-developed response
• Presents a clear position throughout the essay
• Uses a wide range of vocabulary with very natural and sophisticated control of lexical features
• Uses a wide range of structures with full flexibility and accuracy
• Cohesive devices are used effectively to sequence ideas
• Demonstrates awareness of style and tone appropriate to the task

Band 6-7 Essay:

• Addresses all parts of the task, though some parts may be more fully covered than others
• Presents a relevant position, although conclusions may become unclear or repetitive
• Uses an adequate range of vocabulary for the task, with some inaccuracies
• Uses a mix of simple and complex sentence forms
• Has adequate paragraph organization, but may lack overall progression
• Uses cohesive devices effectively, but cohesion within and/or between sentences may be faulty or mechanical

Band 5-6 Essay:

• Addresses the task only partially; format may be inappropriate in places
• Expresses a position but development is not always clear
• Uses limited range of vocabulary; errors may cause strain for the reader
• Uses only a limited range of structures with only rare use of subordinate clauses
• May not use paragraphs sufficiently or appropriately
• Makes inadequate, inaccurate or over-use of cohesive devices

Key Vocabulary to Remember

1. Financial assistance (noun) – /faɪˈnænʃəl əˈsɪstəns/ – monetary help or support
2. Economic growth (noun phrase) – /ˌiːkəˈnɒmɪk ɡrəʊθ/ – an increase in the amount of goods and services produced per head of the population over a period of time
3. Tax incentives (noun phrase) – /tæks ɪnˈsentɪvz/ – a reduction in taxes to encourage people or businesses to do something
4. Free market (noun phrase) – /friː ˈmɑːkɪt/ – an economic system in which prices are determined by unrestricted competition between privately owned businesses
5. Economic stability (noun phrase) – /ˌiːkəˈnɒmɪk stəˈbɪləti/ – a state in which an economy experiences minimal fluctuations in output growth
6. Fiscal policy (noun phrase) – /ˈfɪskəl ˈpɒləsi/ – the use of government spending and taxation to influence the economy
7. Entrepreneurship (noun) – /ˌɒntrəprəˈnɜːʃɪp/ – the activity of setting up a business or businesses, taking on financial risks in the hope of profit
8. Economic resilience (noun phrase) – /ˌiːkəˈnɒmɪk rɪˈzɪliəns/ – the ability of an economy to withstand or recover quickly from difficult conditions

Conclusion

Understanding how to approach IELTS Writing Task 2 essays on tax incentives for small businesses is crucial for achieving a high band score. The sample essays provided demonstrate the level of depth, vocabulary, and structure expected at different band levels. Remember to fully address all parts of the question, use a range of vocabulary and sentence structures, and maintain a clear position throughout your essay.

For further practice, consider writing essays on related topics such as:

• The impact of tax policies on local economic development
• Comparing different forms of government support for businesses
• The role of small businesses in national economic recovery

We encourage you to practice writing your own essay on this topic and share it in the comments section below. This active practice is an excellent way to improve your writing skills and prepare for the IELTS exam.