Tax policy and economic recovery frequently appear in IELTS Writing Task 2 questions, particularly in the last 5 years. Based on analysis of past exam topics, questions about fiscal measures like tax cuts have appeared in approximately 15% of economics-related tasks, making this a highly relevant topic for IELTS candidates.
Let’s examine a recent IELTS question that exemplifies this theme:
Some people believe that reducing taxes is the best way to improve a country’s economic growth. Others think there are better alternatives. Discuss both views and give your opinion.
Analysis of Question Requirements
- Task type: Discussion + Opinion
- Key elements to address:
- Tax reduction as economic stimulus
- Alternative economic growth measures
- Personal stance with justification
Sample Essay 1 (Band 8.5)
The debate over whether tax cuts represent the optimal approach to stimulating economic growth has garnered significant attention among policymakers. While tax reduction can indeed catalyze economic development, I believe that a more comprehensive strategy incorporating multiple measures yields better results.
Proponents of tax cuts argue that they can significantly boost economic performance through several mechanisms. When individuals and businesses retain more of their earnings, they tend to increase spending and investment, creating a multiplier effect throughout the economy. For example, reduced corporate tax rates can encourage companies to expand operations, hire more workers, and increase capital investment. Similarly, lower personal income taxes can enhance consumer purchasing power, driving demand for goods and services.
However, alternative approaches to economic growth deserve equal consideration. Government investment in infrastructure, education, and research and development can create lasting economic benefits by improving productivity and innovation capacity. For instance, South Korea’s remarkable economic transformation was largely attributed to substantial public investment in education and technology rather than tax policies alone. Additionally, targeted support for emerging industries and export promotion can diversify economic growth sources more effectively than across-the-board tax reductions.
In my view, while tax cuts can play a valuable role, they should be part of a broader economic strategy. The most successful economies typically employ a balanced approach, combining selective tax incentives with strategic public investment and regulatory reform. This comprehensive approach ensures sustainable growth while maintaining essential public services and economic stability.
Sample Essay 2 (Band 6.5)
Tax cuts are often seen as a good way to help the economy grow. Some people think this is the best method, but others believe there are better ways. I will discuss both sides and give my opinion.
People who support tax cuts say they help both businesses and individuals. When taxes are lower, companies have more money to hire workers and buy equipment. Also, when people pay less tax, they can spend more money in shops and restaurants. This helps businesses make more profit and grows the economy.
However, there are other ways to make the economy better. The government can spend money on building roads, schools, and hospitals. This creates jobs and helps everyone in society. They can also give money to new businesses or help workers learn new skills. These methods might work better than just cutting taxes.
I think both tax cuts and other methods are important. The government should use different ways to help the economy grow. Just cutting taxes might not solve all problems. We need good roads, schools, and other services too. The best solution is to use both tax cuts and government spending together.
Scoring Analysis
Band 8.5 Essay:
- Task Response (9): Comprehensively addresses all parts with well-developed ideas
- Coherence & Cohesion (8): Logical organization with effective paragraphing
- Lexical Resource (9): Sophisticated vocabulary with natural and precise usage
- Grammar (8): Wide range of structures with full flexibility and accuracy
Band 6.5 Essay:
- Task Response (6): Addresses main points but with less development
- Coherence & Cohesion (7): Clear organization but simpler linking
- Lexical Resource (6): Adequate vocabulary but less sophisticated
- Grammar (7): Mix of simple and complex structures with some errors
Key Vocabulary
- catalyze (v) /ˈkætəlaɪz/ – to cause or accelerate change
- infrastructure (n) /ˈɪnfrəstrʌktʃər/ – basic physical systems of a country
- regulatory reform (n) /ˌreɡjəˈleɪtəri rɪˈfɔːm/ – changes to government rules
- fiscal policy (n) /ˈfɪskəl ˈpɒləsi/ – government spending and taxation decisions
- economic stimulus (n) /ˌiːkəˈnɒmɪk ˈstɪmjələs/ – measures to boost economic activity
Practice writing your own essay on this topic and share it in the comments for feedback. Similar topics might include discussions of other economic policies like interest rates, government spending, or trade regulations.