Tax reforms and their impact on economic growth have become increasingly important topics in recent years. This subject has appeared in several IELTS Writing Task 2 exams, and its relevance is likely to continue growing. Based on past exam trends and current economic discussions, we can expect to see more questions related to tax policies and their effects on national economies. Let’s examine a relevant IELTS Writing Task 2 question and explore sample essays at different band levels.
Some people believe that governments should reduce taxes to boost economic growth, while others think higher taxes are necessary to fund public services. Discuss both views and give your opinion.
Analyzing the Question
This question requires candidates to:
- Discuss the view that lower taxes can stimulate economic growth
- Explain the perspective that higher taxes are needed for public services
- Provide their own opinion on the issue
The task involves comparing and contrasting two opposing viewpoints, which is a common format in IELTS Writing Task 2. Candidates should ensure they address both sides of the argument before presenting their own stance.
Sample Essay 1 (Band 8-9)
The debate over taxation levels and their impact on economic growth is a contentious issue in many countries. While some argue for tax cuts to stimulate the economy, others believe higher taxes are essential for maintaining public services. This essay will examine both perspectives before offering a balanced opinion.
Proponents of lower taxes argue that reducing the tax burden on individuals and businesses can lead to increased economic activity. When people have more disposable income, they tend to spend more, which can boost consumer demand and create jobs. Similarly, businesses with lower tax obligations may invest in expansion, research, and development, potentially driving innovation and economic growth. For example, the United States experienced significant economic growth following the tax cuts implemented in the 1980s, which supporters cite as evidence of this approach’s effectiveness.
On the other hand, advocates for higher taxes emphasize the crucial role of public services in supporting a functioning society and economy. They contend that well-funded education, healthcare, and infrastructure systems are fundamental to long-term economic prosperity. Higher tax revenues enable governments to invest in these essential services, which can enhance workforce productivity, improve living standards, and create a more attractive environment for businesses. Countries like Sweden and Denmark, with their high tax rates and comprehensive social services, are often cited as successful examples of this model.
In my opinion, a balanced approach that considers both economic stimulation and public service funding is ideal. While excessive taxation can indeed stifle economic growth, inadequate public services can also hinder long-term development. I believe the solution lies in implementing smart, progressive tax policies that encourage economic activity while ensuring sufficient revenue for critical public services. This could involve a combination of targeted tax incentives for businesses and individuals, coupled with efficient allocation of resources to high-priority public services.
In conclusion, the relationship between taxation and economic growth is complex and multifaceted. A nuanced approach that balances the need for economic stimulation with the provision of essential public services is likely to yield the best results for sustainable economic growth and societal well-being.
[Word count: 329]
Balancing tax reform and economic growth
Sample Essay 2 (Band 6-7)
The question of whether governments should lower or raise taxes to improve the economy is a difficult one. There are good arguments on both sides, and this essay will discuss them before giving my opinion.
Some people think that reducing taxes is the best way to boost economic growth. When taxes are lower, people have more money to spend, which can help businesses and create jobs. Companies also have more money to invest in new projects or hire more workers. For example, some countries have cut taxes and seen their economies grow faster as a result.
However, others believe that higher taxes are necessary to pay for important public services. They say that things like schools, hospitals, and roads are essential for a strong economy and society. If taxes are too low, the government might not have enough money to provide these services properly. Countries with high taxes often have good public services and a high quality of life for their citizens.
In my opinion, I think the best solution is to find a balance between these two ideas. Taxes should not be so high that they stop people and businesses from spending and investing, but they also shouldn’t be so low that public services suffer. Governments need to be careful and smart about how they set tax rates and use the money they collect.
To conclude, the issue of taxes and economic growth is complicated. While lower taxes can encourage spending and investment, higher taxes can fund important services. I believe a balanced approach that considers both sides is the best way to support long-term economic growth and social well-being.
[Word count: 270]
Sample Essay 3 (Band 5-6)
Taxes are an important topic for many countries. Some people think taxes should be lower to help the economy grow, but others think taxes should be higher to pay for public services. This essay will talk about both ideas and give my opinion.
When taxes are lower, people have more money to spend. This can be good for businesses because people buy more things. Companies also have more money to use for new projects or to hire more workers. Some countries have tried lowering taxes and their economies got better.
But other people say higher taxes are needed for important things like schools and hospitals. If taxes are too low, the government might not have enough money for these services. Countries with high taxes often have good schools and hospitals, which can help people live better lives.
I think both ideas have good points. Maybe the best way is to have taxes that are not too high or too low. Governments should try to find a good balance between helping the economy grow and paying for important services.
In conclusion, taxes are a difficult issue. Lower taxes can help people spend more money, but higher taxes can pay for important things. I think governments should try to find a middle way that helps both the economy and public services.
[Word count: 217]
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 response
- 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
- Demonstrates high levels of coherence and cohesion throughout
- Contains relevant, extended and well-supported ideas
Band 6-7 Essay:
- Addresses all parts of the task, though some parts may be more fully covered than others
- Presents a relevant position, though the 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
- Arranges information and ideas coherently and there is a clear overall progression
- Presents relevant main ideas but some may be inadequately developed/unclear
Band 5-6 Essay:
- Addresses the task only partially; the format may be inappropriate in places
- Expresses a position but the development is not always clear
- Uses a limited range of vocabulary, but this is minimally adequate for the task
- May make noticeable errors in spelling and/or word formation that may cause some difficulty for the reader
- Uses only a limited range of structures with only rare use of subordinate clauses
- Presents information with some organization but there may be a lack of overall progression
Key Vocabulary to Remember
- Tax reforms (noun) – /tæks rɪˈfɔːrmz/ – Changes made to a tax system
- 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
- Disposable income (noun phrase) – /dɪˈspəʊzəbl ˈɪnkʌm/ – The amount of money that households have available for spending and saving after income taxes have been accounted for
- Public services (noun phrase) – /ˈpʌblɪk ˈsɜːvɪsɪz/ – Services provided by the government to people living within its jurisdiction
- Fiscal policy (noun phrase) – /ˈfɪskəl ˈpɒləsi/ – Government spending policies that influence macroeconomic conditions
- Progressive taxation (noun phrase) – /prəˈɡresɪv tækˈseɪʃən/ – A tax system where the tax rate increases as the taxable amount increases
- Infrastructure (noun) – /ˈɪnfrəstrʌktʃə(r)/ – The basic physical and organizational structures and facilities needed for the operation of a society or enterprise
- Stimulate (verb) – /ˈstɪmjuleɪt/ – Encourage or arouse interest or enthusiasm in economic activities
- Revenue (noun) – /ˈrevənjuː/ – Income, especially when of an organization and of a substantial nature
- Prosperity (noun) – /prɒˈsperəti/ – The state of being prosperous; financial well-being
In conclusion, the topic of tax reforms and their impact on economic growth is likely to remain relevant in IELTS Writing Task 2. Candidates should be prepared to discuss various aspects of taxation, including its effects on public services, business investment, and overall economic development. To practice, try writing your own essay on this topic or related ones, such as “The role of government spending in economic recovery” or “Balancing social welfare and economic competitiveness through tax policies.” Feel free to share your practice essays in the comments section for feedback and discussion.
How to create resilient communities in the face of economic challenges is another important topic related to economic policies and their impacts. Understanding these interconnected issues can help you develop a more comprehensive view of economic systems and their effects on society.
Remember, practicing with a variety of economic topics will help you build a strong foundation for tackling any IELTS Writing Task 2 question related to fiscal policies and economic growth. Good luck with your IELTS preparation!