TBFCWTE - Chapter 4

Chapter 4

In the eyes of those in the Ministry of Revenue, the Eastern Palace enterprises, rich enough to rival a kingdom, were the crown prince's private property, but the crown prince was heir to the throne and future emperor. Rounded off, that made them effectively the court's.

Taking some money from the crown prince's private treasury to spend on the people was entirely reasonable.

But Xu Congyi, from his own position, and influenced over the years by some of He Shu's thinking, firmly believed that the court and the Eastern Palace were two separate entities and should, as the crown prince had always insisted, be kept distinct in every respect.

He Shu thoughtfully flipped through several ledgers in succession, lightly tapped the desk with her fingers, and curved her lips slightly.

If Emperor Zhengning had seen her reaction, he would have realized at once that she was scheming something again.

"Just in time. I recently had a good idea that would benefit the state and the people. My only concern was that many people might be unwilling to cooperate. With these, they should find it hard to refuse."

After so many years dealing with those ministers at court, He Shu knew well how hard it was to make them take money back once it was in their pockets.

As crown prince, she could certainly force them to repay, but they could also shamelessly play the rogue, relying on her position as crown prince.

Afterward they could not only default on their debt to her but also win a fine reputation for fearing no power and seeking only the state's and people's benefit.

So He Shu had long since summed up her experience in dealing with such people: do not demand repayment directly; wait for an opportunity to recoup elsewhere. Whether she succeeded depended on who was more skillful.

Those who take gifts cannot speak firmly, and those who eat another's food cannot speak harshly. Once they owed her, they could not oppose certain political measures she proposed.

After many such exchanges, those ministers had learned their lesson and no longer dared treat the Eastern Palace enterprises as public property as a matter of course.

This time it was probably because the cost of covering medical expenses for officials throughout the court and providing loans for serious illness to the poor had grown so large.

The Ministry of Revenue was unwilling to bear this huge expenditure, yet did not dare oppose the policy and risk offending every official in the court. So it had again set its sights on the Eastern Palace's private treasury.

Hearing He Shu's words, Xu Congyi immediately realized that his master was again thinking of spending money to "buy" support. His feelings grew complicated, and he felt deeply aggrieved for her.

"Your Highness, facts have shown that the measures you proposed truly benefit the state and the people. Why must you indulge them so?"

In so vast a country, improving people's livelihoods required money everywhere; no amount was ever enough.

The Eastern Palace had indeed earned a great deal in recent years, but its expenses were also large.

Most seemed to go into investments and building new workshops, but at the same time money had to be spent on local roads and bridges, housing for hired workers, buying resources from nearby people, and stimulating local economies.

In addition, the Eastern Palace spent heavily on promoting education, opening elementary schools and investing in academies in various places, and supporting poor students.

Though it earned much, there were even more places that needed money, so the Eastern Palace private treasury, which outsiders believed richer than the state treasury, was in fact never very well off and sometimes even had to borrow from Emperor Zhengning's private treasury or from wealthy commoners.

For this reason, though He Shu had many ideas, she could only proceed slowly and did not dare take too large a step.

He Shu sighed. "It is not exactly indulgence. As long as they do not ruin my plans, it is fine."

To accomplish anything meant involving many sides. Some people were not good at doing things, but very good at ruining them and holding others back.

"...This matter requires you to make a scene in person. The bigger the better, and outsiders must know why you are making it."

Although it was the Ministry of Revenue that issued notes for local offices to draw money from Eastern Palace enterprises, the ledgers showed that most of it went to cover medical expenses for officials at all levels.

That meant officials throughout the court and country owed her a favor. If she proposed a state policy certain to harm some people's interests now, opposition should be somewhat smaller.

Of course, the premise was that the matter had to become known to all. He Shu was not the sort to do good deeds and leave no name.

After hearing He Shu's arrangement, Xu Congyi nodded with immediate understanding. "Rest assured, Your Highness. I will handle this properly."

Even if the money was doomed never to return, he could take the chance to vent his anger.

He asked no more about the specifics. After handing over the accounts and raising several problems he had found during his inspection, he received the corresponding instructions and left the Eastern Palace.

He had always kept strictly to his duty, focusing only on managing the Eastern Palace enterprises and never meddling in political affairs.

Strictly speaking, managing the Eastern Palace officials, teaching the crown prince to handle government affairs, and assisting the crown prince in governing were his proper duties as Crown Prince Steward.

As a result, many colleagues who disliked him often accused him, and even impeached him at court, of neglecting his proper work.

After meeting Xu Congyi, He Shu received several other subordinates in turn and dealt with the relevant matters. By the time she lay down in bed, it was past the hour of Hai.

At the grand court assembly the next day, He Shu presented a memorial she had long prepared and proposed Tax Reform.

To prepare this memorial, He Shu had not only sent many people to gather a great deal of material from various places but had also dragged Emperor Zhengning through piles of historical records.

So Emperor Zhengning already knew her intentions, but before the assembled civil and military officials he quickly put on a look of shock and surprise in perfect coordination. Taking the memorial, he spoke gravely.

"Crown Prince, the tax system is the foundation of the state and touches every aspect of Great An. It must not be lightly changed."

He Shu stood solemnly at the head of the assembled ministers and bowed in reply.

"Imperial Father, times are advancing, and the state too must seek progress. The current tax system has been in force for many years. Though it has been amended somewhat, it remains unchanged in essentials."

"The poorest commoners own little land, and many have none at all, yet they labor all year and bear most of the tax burden, living in extreme hardship. Meanwhile, the gentry and wealthy households who hold vast tracts of land pay very little tax."

"This unfairness caused by an unfair system only makes the poor poorer and the rich richer. Over time it plants grave dangers for the court's stability."

Tax revenue was directly tied to the purse managed by the Ministry of Revenue. Once the system changed, treasury income would be the first thing affected.

So Minister of Revenue Ke Wenqing immediately stepped forward. "Your Majesty is right. The tax system concerns the foundation of the state and absolutely must not be lightly changed. Moreover, the crown prince knows that the current system has been in use for many years, has long sunk deep into the people's hearts, and enjoys the realm's acceptance and support."

Had Xu Congyi not reported the matter the night before, He Shu might not have produced this Tax Reform memorial so soon, but would have patiently waited for a suitable opportunity.

Now that the opening had come, He Shu did not want to delay further, because the sooner the new policy was implemented, the sooner the poorest people would benefit.

"It enjoys that support because our people are simple and kind and willing to trust the court. Precisely for that reason, we princes and ministers, who are fed by the people of the realm, must not betray that trust."

Ke Wenqing was about to refute her when Emperor Zhengning skimmed the memorial, handed it to Wang Lin, and said, "In this matter, the crown prince acted somewhat rashly. But another tax system had already been conceived and perfected, which was why the crown prince raised the matter. Whether it is workable can be discussed after you have heard it."

Seeing that Emperor Zhengning had not directly endorsed the crown prince's new tax system, the ministers found no chance to argue. They could only obey the imperial instruction and first hear the specifics of the new system in the memorial.

Then the ministers heard the core principle of the new tax system: "merge the poll tax into the land tax; impose no new levy on additional population; never increase taxes." It was something none present had ever heard.

If she had the chance, He Shu most wanted to propose abolishing all taxes for the poorest commoners, but in the current circumstances that was utterly unrealistic.

So she borrowed a Tax Reform policy once implemented in the last feudal dynasty of the world she had known in her previous life, and devised a graduated rate scheme.

Simply put, after abolishing the head tax on additional population, taxes would be levied at rates corresponding to the amount of land people owned.

Thus the less land one owned, the lower the rate; beyond a certain area, the excess would be taxed at corresponding higher grades.

The new system would certainly harm the interests of the gentry and powerful clans who held large amounts of land. The more land one held, the greater the loss.

Therefore, when the civil and military ministers heard the new system, emotions immediately ran high. Those who sympathized with the poorest praised it and were excited. Those representing injured interests detested it, because once implemented, they, their kin, and the forces that followed them would all have to pay more tax.

The Ministry of Revenue officials led by Minister Ke, apart from a few who naturally disliked the new system because of their own status and interests, looked at one another.

They knew better than anyone the tricks in tax collection; under the current system, however, people were "reasonably avoiding tax," and there was nothing they could do.

The crown prince's new rule was meant above all to lighten the burden on the poorest and sharply lower their rates, which seemed likely to reduce treasury income.

But once the new system was implemented, the tax the court could collect from the gentry, wealthy households, and landlords who controlled vast lands would not only fill the shortfall from the poor, but total revenue might even increase considerably.

After a silent calculation, Minister Ke's mind settled, but he knew the matter involved too much and too many powerful interests. The new system might not be implemented smoothly, and he certainly could not express an opinion lightly.

So he stood there firm as a rock and simply ignored all the looks cast his way.

Seeing that on a matter concerning treasury income, Minister Ke, who usually rushed to the front, had adopted an attitude of staying aloof, some ministers cursed him inwardly as crafty and put forward their own spokesperson.

"Your Majesty, the crown prince is young and cannot avoid thinking things through imperfectly. The current tax system was established by the founding emperor and has long been implemented in our Great An. How can it be changed overnight and provoke public criticism? You must think thrice."

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