The topic of whether governments should heavily tax luxury goods is a recurring theme in IELTS Writing Task 2. Based on past exam trends and current global economic discussions, this subject has a high probability of appearing in future tests. Let’s examine a relevant question that has been featured in recent IELTS exams:

Some people think that governments should tax high-earnings individuals and luxury goods at a higher rate. To what extent do you agree or disagree?

Analyzing the Question

This question requires candidates to express their opinion on a progressive taxation system, specifically targeting high-income earners and luxury goods. The key aspects to address are:

1. The concept of higher tax rates for wealthy individuals
2. The idea of increased taxes on luxury goods
3. Your personal stance on these taxation methods
4. Reasons and examples to support your viewpoint

Sample Essays

Band 8-9 Essay

In today’s world of growing income inequality, the idea of implementing higher tax rates on affluent individuals and luxury items has gained traction. While this approach may seem appealing at first glance, I believe it is not an ideal solution and could potentially lead to unintended negative consequences.

Proponents of increased taxes on high earners and luxury goods argue that it would help redistribute wealth and fund social programs. They contend that those who have benefited most from society should contribute more to its overall well-being. Additionally, taxing luxury goods could discourage excessive consumption and promote more sustainable lifestyle choices.

However, there are several drawbacks to consider. Firstly, imposing higher taxes on high-income individuals may discourage entrepreneurship and innovation, which are crucial drivers of economic growth. Successful business owners and professionals might be deterred from expanding their operations or pursuing new ventures if they feel their efforts will be disproportionately taxed. This could lead to reduced job creation and economic stagnation.

Secondly, heavily taxing luxury goods could have adverse effects on industries that produce these items, potentially leading to job losses and reduced economic activity. Many luxury brands employ skilled artisans and contribute significantly to their local economies. Excessive taxation might force these companies to relocate or downsize, negatively impacting workers and communities.

Furthermore, high taxes on luxury goods may encourage black market activities and tax evasion. Wealthy individuals might seek alternative means to acquire these items, such as purchasing them abroad or through unofficial channels, ultimately reducing tax revenue and undermining the intended purpose of the policy.

Instead of relying solely on higher taxes for the wealthy and luxury goods, governments should focus on creating a more balanced and equitable tax system. This could include closing tax loopholes, improving tax collection mechanisms, and implementing policies that promote economic growth across all sectors. Additionally, investing in education and skills training can help reduce income inequality in the long term by providing more opportunities for upward mobility.

In conclusion, while the intention behind taxing high-earners and luxury goods at higher rates may be well-meaning, it is not a comprehensive solution to address wealth disparity. A more nuanced approach that combines fair taxation, economic growth strategies, and investments in human capital is likely to yield better results for society as a whole.

Luxury goods taxation impact on economy

Band 6-7 Essay

The question of whether governments should impose higher taxes on wealthy individuals and luxury goods is a complex issue. In my opinion, I partially agree with this idea, as it has both advantages and disadvantages that need to be carefully considered.

On one hand, increasing taxes on high-income earners and luxury items can have several benefits. Firstly, it can help generate more revenue for the government, which can be used to fund important public services such as healthcare, education, and infrastructure. This additional income could significantly improve the quality of life for many citizens, especially those from lower-income backgrounds.

Moreover, higher taxes on luxury goods might discourage excessive consumption and promote more sustainable lifestyle choices. By making luxury items more expensive, people may be encouraged to spend their money on more essential goods or save for the future. This could lead to a more balanced and responsible approach to personal finance.

However, there are also potential drawbacks to consider. One major concern is that high taxes on wealthy individuals might discourage entrepreneurship and investment. If successful business owners feel that their hard work is being unfairly penalized, they may be less motivated to expand their businesses or create new jobs. This could potentially slow down economic growth and negatively impact employment opportunities.

Additionally, heavily taxing luxury goods could have unintended consequences for certain industries and workers. Many luxury brands employ skilled craftsmen and contribute significantly to local economies. If these companies face reduced demand due to high taxes, it could lead to job losses and economic difficulties in some sectors.

In conclusion, while there are valid arguments for taxing high-earners and luxury goods at a higher rate, it is important to strike a balance. Governments should carefully consider the potential impacts on economic growth, job creation, and overall societal well-being before implementing such policies. A more moderate approach, combined with other measures to address income inequality, may be more effective in achieving a fair and prosperous society for all.

Band 5-6 Essay

In today’s world, many people think that governments should make rich people and expensive things pay more taxes. I agree with this idea because I think it can help make society more fair.

First, when rich people pay more taxes, the government can get more money. This money can be used for good things like better schools and hospitals. This helps everyone in the country, especially poor people who need these services.

Also, if luxury things cost more because of taxes, maybe people won’t buy them as much. This could be good for the environment because many luxury items use a lot of resources to make. If people buy less of these things, it might be better for the planet.

But there are also some problems with this idea. If rich people have to pay too much tax, they might not want to start new businesses. This could be bad for the economy because new businesses create jobs for people.

Another problem is that if luxury goods cost too much, the companies that make them might lose money. This could mean that some people lose their jobs, which is not good.

In conclusion, I think making rich people and luxury goods pay more taxes can be a good idea, but the government needs to be careful. They should find a way to get more money for important things without hurting the economy too much. It’s a difficult balance, but it’s important to try to make things fair for everyone.

Explaining the Scores

Band 8-9 Essay Analysis

This essay demonstrates excellent writing skills and a sophisticated approach to the topic, earning it a high band score:

1. Task Achievement: The essay fully addresses all parts of the task, presenting a clear position with well-developed arguments and relevant examples.
2. Coherence and Cohesion: Ideas are logically organized with clear progression throughout the essay. Paragraphs are well-linked, and cohesive devices are used effectively.
3. Lexical Resource: A wide range of vocabulary is used accurately and appropriately, including less common words and phrases (e.g., “unintended negative consequences,” “redistribution of wealth”).
4. Grammatical Range and Accuracy: The essay displays a wide range of complex structures used accurately, with only minor errors that do not impede communication.

Band 6-7 Essay Analysis

This essay shows good writing skills but lacks some of the sophistication of the higher band essay:

1. Task Achievement: The essay addresses the task and presents a clear position, but some arguments could be further developed.
2. Coherence and Cohesion: There is a clear overall progression, but some paragraphs could be better linked.
3. Lexical Resource: A good range of vocabulary is used, but it’s less varied and sophisticated compared to the Band 8-9 essay.
4. Grammatical Range and Accuracy: The essay uses a mix of simple and complex sentences, with generally good control of grammar and punctuation.

Band 5-6 Essay Analysis

This essay demonstrates basic writing skills but has several limitations:

1. Task Achievement: The essay addresses the main points of the task but lacks depth in its arguments and examples.
2. Coherence and Cohesion: There is a basic structure, but the progression of ideas is not always clear, and paragraphs are not well-linked.
3. Lexical Resource: The vocabulary is limited and repetitive, with some errors in word choice and usage.
4. Grammatical Range and Accuracy: Sentences are mostly simple, with limited use of complex structures. There are noticeable grammatical errors, but the meaning is generally clear.

Key Vocabulary

1. Progressive taxation (noun) – /prəˈɡresɪv tækˈseɪʃən/ – A tax system where higher incomes are taxed at higher rates
2. Redistribute wealth (verb phrase) – /ˌriːdɪˈstrɪbjuːt welθ/ – To change how money and resources are divided among people
3. Entrepreneurship (noun) – /ˌɒntrəprəˈnɜːʃɪp/ – The activity of starting and running new businesses
4. Economic stagnation (noun phrase) – /ˌekəˈnɒmɪk stæɡˈneɪʃən/ – A prolonged period of slow economic growth
5. Black market (noun) – /blæk ˈmɑːkɪt/ – An illegal system of buying and selling goods
6. Tax evasion (noun) – /tæks ɪˈveɪʒən/ – The illegal practice of not paying taxes
7. Upward mobility (noun phrase) – /ˈʌpwəd məʊˈbɪləti/ – The capacity to move to a higher social or economic position
8. Nuanced approach (adjective + noun) – /ˈnjuːɑːnst əˈprəʊtʃ/ – A careful and subtle way of dealing with a situation

IELTS Writing Task 2 essay structure diagram

Conclusion

The topic of taxing luxury goods and high-income earners is a complex and relevant issue for IELTS Writing Task 2. By studying these sample essays and understanding the scoring criteria, you can improve your ability to construct well-reasoned arguments and express them effectively in writing.

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

1. The effectiveness of wealth taxes in reducing income inequality
2. The impact of consumption taxes on consumer behavior
3. Alternative methods for funding public services without raising taxes

Remember to focus on developing clear arguments, using a range of vocabulary and grammatical structures, and organizing your ideas coherently. Feel free to share your practice essays in the comments section for feedback and discussion with other learners.