📋 Written Ability Test (WAT)/Essay Analysis Guide: Should Governments Implement Progressive Taxation Systems to Reduce Wealth Inequality?

🌍 Understanding the Topic’s Importance

Progressive taxation is pivotal in addressing income inequality. For B-schools, this essay connects with public finance, governance, and ethical leadership themes.

📝 Effective Planning and Writing

• Time Allocation:
  • Planning: 5 minutes
  • Writing: 20 minutes
  • Review: 5 minutes
• Structure:
  • Introduction: 70 words
  • Body: 360 words
  • Conclusion: 70 words

✨ Introduction Techniques for Essays

• Contrast Approach: “While billionaires double their wealth every decade, nearly 10% of the global population lives below $2 per day. Progressive taxation emerges as a tool to address this stark inequality.”
• Timeline Approach: “Since its conceptualization in 1799, progressive taxation has evolved to fund social services and reduce economic disparity.”

📊 Structuring the Essay Body

✔️ Achievements:

• Provide data on successful models (e.g., Nordic countries).
• Highlight Indian reforms like GST and direct tax systems.

⚠️ Challenges with Comparative Analysis:

• Discuss evasion and economic distortions using global examples.

🔮 Future Outlook:

• Propose tech-enabled tax compliance and international policy coordination.

📄 Concluding Effectively

• Balanced Perspective: “Progressive taxes are effective but insufficient alone; holistic economic strategies are essential.”
• Global Comparison: “Learning from global best practices can enhance the effectiveness of progressive tax systems.”

📌 Analyzing Successes and Shortcomings

• Key Achievements: Enhanced equity, funded public welfare.
• Ongoing Challenges: Tax evasion, unequal implementation.
• Global Context: Scandinavian success versus emerging economies’ struggles.

💡 Recommendations for Sustainable Progress

• Strengthen digital tax tracking.
• Collaborate globally on tax avoidance.
• Incorporate alternate models like carbon or wealth taxes.

📚 Sample Short Essays

Balanced Perspective:

“Progressive taxation reduces inequality but requires robust enforcement and international collaboration for broader success.”

Solution-Oriented:

“Governments must complement progressive taxes with tech-driven compliance and global tax avoidance treaties.”

Global Comparison:

“Drawing from Nordic systems, developing economies can refine progressive taxes to align growth with equity.”