IELTS Essay: Taxing Industries

Vocabulary

What do the words in bold below mean? Make some notes on paper to aid memory and then check below.

Many today argue that the environment can be best protected by heavily taxing various industries. In my opinion, though this has worked in certain cases, taxation is not as effective as more positive reforms.

The case for taxing industry is that it will discourage the worst practices of companies. This has been evidenced in the European Union where enterprises are taxed at higher rates, oftentimes depending on their relative carbon footprints. The result is that businesses are incentivized to adopt cleaner energy practices. The companies that are greener can therefore enjoy both the benefits of reduced taxes and the public opinion boost concomitant with eco-friendly initiatives. The caveat to this approach is that many multinationals are able to simply move their production facilities and waste to nearby nations.

Moreover, there are more positive policies that can encourage, rather than discourage, the corporate world. Taxation is a fundamentally reactive measure that supposes companies would not wish to inherently protect the planet. A more proactive approach would involve funding green industries. For example, companies such as Tesla have received billions in government subsidies to build stability for a green industry. Over time, more companies will be able to establish themselves and turn profits and there will be less of a need to use taxes to discourage industries from polluting. This solution will be longer lasting as it rewards good behavior instead of punishing bad behavior.

In conclusion, despite taxing industries having an immediate effect, a greater impact would result from subsidies for various companies. Governments should pursue this more positive strategy.