Tax policies and their impact on disposable income have become increasingly prominent topics in IELTS Writing Task 2. These subjects often appear in exam questions due to their relevance to global economic issues and personal finance. Based on recent trends, we can expect to see more questions related to taxation and income in future IELTS exams. Let’s examine a relevant question that has appeared in past tests and analyze how to approach it effectively.
Some people believe that governments should reduce taxes on citizens, while others think taxes should be increased to fund public services. Discuss both views and give your own opinion.
Analyzing the Question
This question addresses the debate between lower taxes and increased public spending, touching on the core issue of how tax policies affect disposable income. It requires candidates to:
- Discuss arguments for reducing taxes
- Explore reasons for increasing taxes to fund public services
- Present and justify their own opinion on the matter
Let’s look at sample essays for different band scores to understand how to approach this question effectively.
Sample Essay 1 (Band 8-9)
Taxation is a contentious issue that affects every citizen’s financial well-being. While some advocate for tax reductions to increase disposable income, others argue for higher taxes to improve public services. This essay will examine both perspectives before presenting my own viewpoint.
Proponents of tax cuts argue that lower taxes lead to increased consumer spending and economic growth. When individuals have more disposable income, they are more likely to purchase goods and services, stimulating business activity and job creation. Furthermore, reduced tax burdens can incentivize entrepreneurship and attract foreign investment, potentially boosting a country’s overall economic performance. These factors contribute to a more dynamic and prosperous economy, benefiting both individuals and the state in the long run.
On the other hand, those in favor of higher taxes emphasize the importance of well-funded public services. They contend that increased tax revenue allows governments to invest in critical areas such as healthcare, education, and infrastructure. High-quality public services can lead to a better-educated workforce, improved public health, and more efficient transportation systems, all of which contribute to long-term economic growth and social well-being. Moreover, robust social safety nets funded by taxes can reduce inequality and provide support for vulnerable members of society.
In my opinion, a balanced approach that combines moderate taxation with efficient public spending is ideal. While excessive taxes can stifle economic growth and reduce individual financial freedom, inadequate funding for public services can lead to societal problems and hinder long-term development. Governments should strive to implement progressive tax systems that ensure fair contributions from all citizens while providing targeted relief for lower-income groups. Simultaneously, they should focus on optimizing public spending to maximize the benefits derived from tax revenue.
In conclusion, the debate over taxation levels is complex and multifaceted. While both reducing and increasing taxes have their merits, I believe that a nuanced approach that balances economic growth with social welfare is the most effective strategy for fostering a prosperous and equitable society.
(Word count: 309)
Sample Essay 2 (Band 6-7)
Taxes are an important topic that affects everyone’s lives. Some people think the government should lower taxes, while others believe taxes should be higher to pay for public services. This essay will discuss both sides and give my opinion.
People who want lower taxes say it’s good for the economy. When people have more money to spend, they buy more things, which helps businesses and creates jobs. Lower taxes can also encourage people to start their own businesses. This can make the country’s economy stronger and help everyone in the long run.
On the other hand, those who support higher taxes think it’s necessary for better public services. They say that with more tax money, the government can improve things like schools, hospitals, and roads. Good public services can make people healthier and better educated, which is good for the country. Higher taxes can also help poor people by providing social services.
In my opinion, I think there should be a balance between low taxes and good public services. If taxes are too high, it can hurt the economy, but if they’re too low, important services might not have enough money. I believe the government should try to find a middle ground where taxes are fair for everyone and public services are still good quality.
To conclude, the question of whether to have higher or lower taxes is not easy to answer. Both sides have good points, but I think the best solution is to have moderate taxes that can support necessary public services without putting too much burden on people’s incomes.
(Word count: 265)
Sample Essay 3 (Band 5-6)
Taxes are very important for every country. Some people think taxes should be lower, but others think they should be higher. I will talk about both ideas and give my opinion.
People who want lower taxes say it’s good because people can spend more money. When people buy more things, it helps shops and makes more jobs. Also, if taxes are low, maybe more people will start businesses. This can make the country richer.
But people who want higher taxes say it’s needed for better things like schools and hospitals. If the government has more money from taxes, they can make these services better. Good schools and hospitals help everyone in the country. Also, higher taxes can help poor people get help from the government.
I think both ideas have good points. Low taxes are good for people to have more money, but high taxes can help make the country better. Maybe the best way is to have taxes that are not too high or too low. The government should try to make taxes fair for everyone.
In conclusion, taxes are a difficult topic. Lower taxes and higher taxes both have good reasons. I think the government should try to find a good balance between the two.
(Word count: 193)
Explanation of Band Scores
Band 8-9 Essay:
This essay demonstrates excellent coherence, cohesion, and a wide range of vocabulary and grammatical structures. It:
- Presents a clear and well-developed argument
- Uses sophisticated vocabulary (e.g., “contentious,” “incentivize,” “nuanced”)
- Employs complex sentence structures
- Provides a balanced discussion of both views
- Offers a well-reasoned personal opinion
- Maintains a formal, academic tone throughout
Band 6-7 Essay:
This essay shows good coherence and a reasonable range of vocabulary and grammar. It:
- Addresses all parts of the task
- Uses some less common vocabulary (e.g., “encourage,” “necessary,” “moderate”)
- Includes a mix of simple and complex sentences
- Presents ideas clearly, though with less sophistication than the Band 8-9 essay
- Offers a personal opinion with some supporting ideas
- Maintains a generally appropriate tone
Band 5-6 Essay:
This essay demonstrates basic coherence and a limited range of vocabulary and grammar. It:
- Addresses the main parts of the task, but with less depth
- Uses mostly simple vocabulary and sentence structures
- Presents ideas in a straightforward manner, but with less clarity and development
- Offers a personal opinion, though with limited supporting arguments
- Shows some attempt at formal language, but with inconsistencies
Key Vocabulary to Remember
- Taxation (noun) – /tækˈseɪʃən/ – The system of collecting taxes
- Disposable income (noun) – /dɪˈspəʊzəbl ˈɪnkʌm/ – Money available for spending after taxes and necessities
- Incentivize (verb) – /ɪnˈsentɪvaɪz/ – To encourage or motivate
- Progressive tax (noun) – /prəˈɡresɪv tæks/ – A tax system where higher earners pay a higher percentage
- Public services (noun) – /ˈpʌblɪk ˈsɜːvɪsɪz/ – Services provided by the government for the public
- Economic growth (noun) – /ˌiːkəˈnɒmɪk ɡrəʊθ/ – Increase in a country’s production of goods and services
- Social welfare (noun) – /ˈsəʊʃl ˈwelfeə/ – The well-being of the entire society
- Fiscal policy (noun) – /ˈfɪskl ˈpɒləsi/ – Government policy on taxation and spending
- Revenue (noun) – /ˈrevənjuː/ – Income, especially from taxes
- Burden (noun) – /ˈbɜːdn/ – A duty or responsibility that causes hardship
Tax policy effects on economy diagram
To conclude, the impact of tax policies on disposable income is a crucial topic in IELTS Writing Task 2. By understanding different perspectives and using appropriate vocabulary and structures, you can craft well-argued essays on this subject. Remember to practice writing your own essays on similar topics, such as how tax cuts influence financial markets or how tax deductions affect personal income. You can also explore related topics like the importance of tax reforms for economic growth and how inflation affects disposable income. Feel free to share your practice essays in the comments section for feedback and further improvement.