📋 Written Ability Test (WAT) Analysis Guide

💡 Should Countries Tax Wealth More Heavily than Income?

🌟 Understanding the Topic’s Importance

Wealth taxes are central to the debate on reducing inequality and generating sustainable revenue. Their evaluation offers insights into balancing equity with economic efficiency, a crucial theme in B-school curricula.

⏱️ Effective Planning and Writing

• Time Allocation (30 minutes):
• Reading & Planning: 5 minutes.
• Writing: 20 minutes.
• Review: 5 minutes.
• Essay Structure:
• Introduction: 60-70 words setting the context with a compelling fact or contrast.
• Body: 350-375 words divided into achievements, challenges, and future outlook.
• Conclusion: 60-70 words offering a balanced or forward-looking perspective.

📚 Introduction Techniques

• Contrast Approach: “While income taxes form the backbone of most tax systems, wealth concentration remains unchecked, with the top 1% owning more wealth than the bottom 50% globally.”
• Solution-Based Approach: “Introducing wealth taxes can address rising inequality and fiscal deficits, provided implementation challenges are tackled effectively.”

🏆 Structuring the Essay Body

• Achievements: Highlight examples like Nordic countries using wealth taxes to reduce inequality.
• Challenges: Discuss administrative complexities and risks of capital flight.
• Future Outlook: Recommend solutions like international coordination and tech-driven valuation systems.

📄 Concluding Effectively

• Balanced Conclusion: “While wealth taxes present challenges, their potential to address inequality and fiscal sustainability makes them worth exploring with careful design.”
• Global Comparison Conclusion: “Countries like Norway and Switzerland illustrate that wealth taxation can work if implemented with precision and fairness.”

📖 Sample Short Essays

• Balanced Perspective: “Wealth taxes, though administratively complex, are vital in reducing inequality and generating sustainable revenue. Countries can draw lessons from successful implementations while addressing global challenges like capital flight.”
• Solution-Oriented: “Introducing a modest wealth tax alongside anti-avoidance measures can strike a balance between equity and economic growth, ensuring inclusivity.”
• Global Comparison: “Norway and Switzerland show that wealth taxes can work effectively, offering lessons for countries grappling with inequality and fiscal deficits.”