C2 Proficiency (CPE): Writing Test Three

The Vital Role of High Net-Worth Individuals

Wealthy individuals make an invaluable contribution to modern economies through their entrepreneurial activities, investment, and philanthropy. The top 1% of earners typically contribute over a third of all income tax revenue, effectively subsidising public services for the wider population. Their business ventures create thousands of jobs, while their consumer spending supports countless luxury and service industries. Many wealthy individuals establish charitable foundations that address critical social issues more efficiently than government programmes. Their investment in start-ups and innovative technologies drives economic growth and technological advancement. Furthermore, their international business activities attract foreign investment and enhance global trade relationships, benefiting the broader economy through increased economic opportunities and knowledge transfer.

A System Rigged in Favour of the Wealthy

Despite claims about their economic contribution, the ultra-wealthy consistently avoid paying their fair share through sophisticated tax avoidance schemes and offshore arrangements. While their nominal tax contributions may seem large, they often pay a lower effective tax rate than middle-income workers. The supposed job creation benefits of their businesses frequently come with poor working conditions and suppressed wages. Their philanthropic activities, while lauded, often serve as tax write-offs and provide them with undue influence over social policy. The concentration of wealth has reached unprecedented levels, with the richest 1% now owning more wealth than half the world's population combined. This accumulation of wealth perpetuates inequality through privileged access to education, healthcare, and investment opportunities, effectively pulling up the ladder behind them.