Taxes play a crucial role in shaping financial decisions for individuals and businesses alike. This topic has appeared frequently in IELTS Writing Task 2 exams, and its relevance to economic policies and personal finance makes it likely to continue being a popular subject. Let’s explore a real IELTS question on this theme and analyze sample essays for different band scores.

Some people believe that governments should use taxes to increase the cost of products and services that are bad for people’s health, such as tobacco and junk food. To what extent do you agree or disagree with this opinion?

Analyzing the Question

This question asks for your opinion on using taxation as a tool to discourage unhealthy behaviors. It requires you to consider:

1. The effectiveness of taxes in influencing consumer choices
2. The role of government in public health
3. Potential consequences of such policies
4. Alternative approaches to promoting health

Now, let’s look at sample essays for different band scores.

Sample Essay 1 (Band 8-9)

Governments worldwide are increasingly using fiscal policies to promote public health, and taxing harmful products is a contentious yet potentially effective strategy. While I largely agree with this approach, I believe it should be implemented cautiously and in conjunction with other measures.

Taxing unhealthy products can be an effective deterrent, as demonstrated by successful tobacco control policies in many countries. Higher prices often lead to reduced consumption, particularly among price-sensitive groups like youth. Moreover, the revenue generated from these taxes can be reinvested in public health initiatives, creating a positive feedback loop. For instance, funds from cigarette taxes could support smoking cessation programs or cancer research.

However, this approach is not without drawbacks. Critics argue that such taxes are regressive, disproportionately affecting lower-income individuals who may already struggle with healthcare costs. There’s also the risk of creating black markets for heavily taxed goods, as seen with cigarette smuggling in some regions. Furthermore, defining what constitutes “junk food” can be challenging and may lead to unintended consequences for the food industry.

To maximize effectiveness and minimize negative impacts, I believe governments should adopt a multifaceted approach. Taxation should be part of a comprehensive strategy that includes education, advertising regulations, and initiatives to make healthier options more accessible and affordable. For example, alongside taxing sugary drinks, governments could subsidize fresh produce or invest in community sports facilities.

In conclusion, while I support the use of taxes to discourage unhealthy consumption, I believe this tool should be wielded judiciously. By combining taxation with other public health measures and considering potential unintended consequences, governments can more effectively guide their populations towards healthier choices without unduly burdening vulnerable groups.

(Word count: 277)

How taxes influence financial decisions for healthy choices

Essay Analysis (Band 8-9)

This essay demonstrates excellent coherence, cohesion, and vocabulary use, hallmarks of a high band score:

1. Clear position: The writer agrees with the policy but advocates for careful implementation.
2. Coherent structure: Each paragraph focuses on a specific aspect (benefits, drawbacks, recommendations).
3. Advanced vocabulary: “contentious,” “deterrent,” “regressive,” “multifaceted approach”
4. Varied sentence structures: A mix of complex and compound sentences.
5. Strong examples: Tobacco control policies, reinvestment of tax revenue, potential for black markets.
6. Balanced argument: Considers both pros and cons of the policy.
7. Clear conclusion: Summarizes the main points and restates the writer’s position.

Sample Essay 2 (Band 6-7)

In recent years, many governments have started using taxes to make unhealthy products more expensive. I think this is generally a good idea, but there are some problems with it too.

One good thing about taxing unhealthy products is that it can make people buy less of them. For example, if cigarettes are very expensive, some people might smoke less or even quit. This can help improve public health. Also, the government can use the extra money from these taxes to pay for healthcare or education programs.

However, there are also some negative points to consider. One problem is that these taxes often affect poor people more than rich people. Poor people might still buy these products even if they’re expensive, which means they have less money for other important things. Another issue is that it’s not always clear what should be taxed. Some foods might be unhealthy if you eat too much, but okay in small amounts.

I think the government should use taxes on unhealthy products, but they should also do other things to help people be healthier. For instance, they could make sure there are more healthy food options in schools and workplaces. They could also run campaigns to teach people about healthy living.

In conclusion, I agree that governments should use taxes to make unhealthy products more expensive, but this should be just one part of a bigger plan to improve public health.

(Word count: 235)

Essay Analysis (Band 6-7)

This essay demonstrates good control of language and ideas but lacks some of the sophistication of the higher band essay:

1. Clear position: The writer agrees with the policy but acknowledges its limitations.
2. Adequate structure: Paragraphs are organized logically, but transitions could be smoother.
3. Good vocabulary: Uses some topic-specific terms like “public health” and “campaigns”
4. Mixture of simple and complex sentences: Shows some variety in sentence structure.
5. Relevant examples: Mentions cigarettes and the impact on poor people.
6. Attempts at balance: Considers both advantages and disadvantages.
7. Basic conclusion: Restates the main idea but could be more nuanced.

Key Vocabulary to Remember

1. Fiscal policy (noun) /ˈfɪskəl ˈpɒləsi/: Government policy on taxation and spending
2. Regressive (adjective) /rɪˈɡresɪv/: Disproportionately affecting lower-income individuals
3. Deterrent (noun) /dɪˈterənt/: Something that discourages a particular action
4. Multifaceted (adjective) /ˌmʌltɪˈfæsɪtɪd/: Having many different aspects or features
5. Subsidize (verb) /ˈsʌbsɪdaɪz/: Support financially
6. Contentious (adjective) /kənˈtenʃəs/: Causing or likely to cause disagreement
7. Cessation (noun) /seˈseɪʃn/: The act of ending something
8. Disproportionately (adverb) /ˌdɪsprəˈpɔːʃənətli/: To a degree that is too large or too small in comparison with something else

Tax policy impact on consumer behavior

In conclusion, the topic of How Taxes Influence Financial Decision-making, particularly in the context of public health, is a complex and relevant issue for IELTS Writing Task 2. As you practice, consider exploring related themes such as:

• The impact of tax incentives on environmentally friendly products
• The role of taxes in wealth redistribution
• How tax policies affect small businesses versus large corporations

Remember to structure your essays clearly, use a range of vocabulary, and provide specific examples to support your arguments. Practice writing your own essay on this topic and consider sharing it in the comments section for feedback and discussion. This active engagement will help you improve your writing skills and prepare effectively for the IELTS exam.

For further insights into financial decision-making in the modern era, you might find it interesting to explore how robo-advisors change investment strategies. Additionally, if you’re interested in other aspects of government policy and societal change, you could read about the debate on whether the legal age for voting should be lowered to 16. These topics can provide valuable context and vocabulary for discussing broader issues of finance and governance in your IELTS essays.