Chapter 272: No Profit, No Early Rise

Father…

Li Linfu, dragging his weary body, returned home and met his eldest son Li Xiu at the gate of the residence, who seemed about to speak but held back.

"Now that you have risen to the rank of Jiangzuojian, is there something you're hesitating to say?"

Li Linfu frowned and scolded softly. With Fang Chongyong as a benchmark, all his sons have become worthless.

"Father, that Fang Chongyong has been waiting at the house for a long time and is still in the main hall."

Li Xiu lowered his voice and said.

Indeed!

Li Linfu's gloomy expression eased a bit, and he nodded, saying, "Hmm, understood. Now take the household youths and servants for a spring outing in the outskirts; do not disturb my affairs."

Hearing this, Li Xiu understood, bowed, and turned to walk into the courtyard.

Li Linfu immediately entered his own courtyard as well, and in the main hall saw Fang Chongyong, whose eyes were steady and head bowed in thought. He quickly clasped his hands, bowed, and laughed, "What wind has blown Xiao Fang Jiedushi to my residence? Come, come, let's discuss in the study."

If not for having seen an hour ago how cautious Li Linfu was before Ji Ge, Fang Chongyong would now surely think this Tang Right Prime Minister is effortlessly unrestrained.

He hurriedly rose, bowed courteously, and said, "The Right Prime Minister is truly gracious; I am here only for a small matter, just a small matter."

Li Linfu nodded thoughtfully and made a gesture of invitation.

The two went to a narrow secret room, sat down, and Li Linfu got straight to the point, teasing:

"Xiao Fang Jiedushi is truly in high spirits, so unlike ordinary people."

The flower‑petal‑shining tower was resplendent in gold and jade, yet at that time Xiao Fang Jiedushi had words he did not wish to speak;

Here my humble thatched hut seems simple, and now Xiao Fang Jiedushi actually has something to say; this truly leaves me baffled."

Li Linfu spoke while brewing tea by himself, his technique very skillful.

"These days the court's revenue declines year by year; to raise more taxes, the Right Prime Minister quietly reformed the rent‑labor‑tax system, implementing the Three-Office Tax Law in many places, and even created a post called Three-Office Commissioner to handle it.

For the people of the realm, the Right Prime Minister works day and night, racking his brain."

Fang Chongyong pretended a nonchalant demeanor, clicking his tongue beside him as he sighed.

Li Linfu's hand stirring the tea instantly froze, a stiff smile appearing on his face as he lightly said:

"Indeed, Xiao Fang Jiedushi is quite familiar with state affairs."

"How could I dare, I only know a little. The Right Prime Minister is truly devoted to court affairs; I greatly admire him!

A diligent official like the Right Prime Minister, our Great Tang could scarcely find a second."

Fang Chongyong feigned a riddle, then exchanged a glance with Li Linfu.

Seeing that the young Jiedushi before him seemed harmless, Li Linfu felt a bit relieved. His anxiety had cause: the Three-Office Tax Law's operation had hit a serious snag, and now Li Linfu was riding a tiger he could not dismount!

What is the "Three-Office Tax Law"?

In fact it isn't an official name; it's a label Fang Chongyong coined. In principle the system can't be called a 'tax law'; at most it's a 'tax system reform', merely the Tang central finance's desperate struggle as the rent‑labor‑tax system teeters toward collapse.

After all, by the end of the Kaiyuan era and the beginning of Tianbao, any official in the Ministry of Revenue in Chang'an, if asked, would conclude that the rent‑labor‑tax system had become despised by all.

But such ancestral law is hard to change, and Ji Ge lacks the energy to tinker with it. Unless a nationwide upheaval occurs, causing the large‑landholding landlords to 'naturally' lose their lands and thus provide perfect conditions for reform, only minor tweaks are possible.

Now altering the rent‑labor‑tax: a small change could cause great chaos; a major overhaul might bring down the state!

If one truly tries to clash with the interests of those aristocratic powers, the Great Tang would instantly erupt into turmoil ten times the intensity of the An‑Shi Rebellion, akin to the rapid collapse seen in the former Soviet Union after its dissolution.

Thus, with Ji Ge not fully grasping the details (Ji Ge ignoring the specifics), Li Linfu issued a 'minor' land‑reform plan, which is the 'Three-Office Tax Law' Fang Chongyong mentioned.

According to the old tax code, the rent and levy within the rent‑labor‑tax required peasants to pay fixed amounts of grain and cloth, the so‑called 'if you have land you pay rent, if you have a body you pay labor, if you have a household you pay levy'.

Specifically: each household must annually deliver two shi of millet as rent; pay two zhang of silk, three liang of cotton, or two zhang five chi of cloth, or three jin of hemp as levy; labor (yong) refers to corvée, which has long ceased to be enforced as originally stipulated.

After reforming to the 'Three-Office Tax System', the court no longer collects rent‑labor‑tax in fixed amounts, but proportionally according to rank. If a household's fields yield more, they pay more; if less, they pay less!

In theory this could lessen the tax burden on ordinary people and ease social tensions.

For example, if a household produces a certain amount of grain, officials under the Three-Office Commissioner will visit that home to determine the 'grade' of its output. According to the grades set by the authorities, a pre‑determined proportion of the yield is collected.

The woven cloth is also taxed proportionally. No longer a fixed quantity, nor solely grain.

That means even within the same locality or village, as long as the crops' types and quality differ, or the woven cloth's quality varies, the tax proportion may differ entirely.

For families choosing different crops, the economic pressure could be completely different.

As for how quality grades are set, and how taxes on different crops (including fruit) are determined, the central government lacks a uniform standard; each region follows local customs.

Or even if the center provides standards, they're meaningless; there are far too many opportunities for manipulation!

Such a tax method, not to mention in the Tang era, would be unworkable even in the era of Fang Chongyong's previous life.

Chaos is inevitable!

Li Linfu's original intention was good; he wanted to turn fixed amounts into fixed ratios and include agricultural by‑products in taxation, thereby adjusting tax pressure across social strata.

But he didn't consider whether the Tang bureaucracy could realistically implement such a complex tax law.

Fang Chongyong, however, is an official well‑versed in grassroots administration, and he knows very clearly whether Li Linfu's 'Three-Office Tax Law' actually eases the peasants' burden.

The court indeed collects more taxes, but the poor live even harder! The more leeway a policy has, the easier it is for powerful local magnates to manipulate it.

Since the collection ratio is based on product grades, there are many manipulable points; those wielding great power have ways to lessen their own tax burden.

When Li Linfu heard Fang Chongyong mention the 'Three-Office Tax Law', his face went stiff. Naturally, the law's implementation was poor and resisted by many local officials. Being mocked by Fang Chongyong made the Tang Right Prime Minister look rather bad.

"The Great Tang may appear splendid, but the soil's fertility declines year by year.

I, as a saintly minister, manage the state with caution; some matters inevitably go awry."

Li Linfu brushed it off with a light laugh, then handed the freshly brewed, salted tea to Fang Chongyong.

"This method is untenable; while chaos hasn't yet erupted, better to discard it and adopt a Two‑Tax Law."

Fang Chongyong waved his hand lightly and said.

"Then what is the Two‑Tax Law?"

Li Linfu asked curiously.

"The state will focus on land tax and household tax, subsuming all other taxes under them, collecting uniformly, and no longer levying rent‑labor‑tax."

Since the taxes are levied in the summer and autumn seasons, someone calls it the Two-Tax System.

Afterwards the court only collects the two taxes, and all other burdensome levies are no longer imposed. While collecting the two taxes, it issues Jiaozi, allowing the people to pay taxes with Jiaozi.

The court determines household grades based on assessments of wealth and poverty.

According to the grade, the two-tax rates differ: rich households pay more, poor households pay less, and that's all.

Fang Chongyong said the earth‑shattering words in a plain tone!

Yes! That's it! That's it!

Li Linfu, excited, grabbed Fang Chongyong's sleeve and wouldn't let go.

He has been reforming Tang's tax system for many years, making numerous minor adjustments, such as lowering the proportion of the land and labor tax, and increasing the proportion of land tax; all of these developments head toward the so‑called "Two‑Tax System" that Fang Chongyong just mentioned.

The only difference is that he hasn't been as thorough as the other party, or perhaps he wants to but cannot, lacking the objective conditions for reform.

Why say that? Because once you try to replace the "in‑kind tax" with a monetary tax, aside from other difficulties, the first problem is the severe shortage of "currency"!

The court wants to switch to "collecting money", but at the very least society must have copper coins, right? With so few coins, how can the court collect money?

If the authorities try to collect copper coins, there will be only one outcome: economic collapse. Once the court sets a tax collection period, the price of copper coins will surge and inflate during that period.

The taxpayers then have to pinch their noses and sell their agricultural products at low prices to exchange for money.

In this process they lose a huge amount of wealth, which ultimately ends up in the hands of the powerful aristocratic families holding large amounts of copper coins, who obtain it by manipulating market prices.

Ordinary people and the court are both losers.

Silver, gold and the like are equally scarce; the only thing Tang lacks is silk. If silk were collected as tax, it would revert to the old land and labor tax route—reform would be no reform at all.

However, if the court now issues Jiaozi, this problem disappears entirely.

The powerful local aristocrats who wish to manipulate prices cannot let the court print money without limit!

Li Linfu quickly grasped this key point.

Of course, if such a reform were truly carried out… Li Linfu has no doubt that he would not live beyond a month, and the tax law would likely not be implemented smoothly.

Who is a rich household and who pays more tax is obvious; no one wants to be classified as a rich household.

Moreover, many of the powerful aristocratic families are exempt from the land and labor tax; they now only pay land and household taxes, a light burden. Implementing the so‑called "Two‑Tax System" would be blatantly scooping money from their pockets, with no disguise!

For example, the Wei clan of Jingzhao, and likewise the Du clan of Jingzhao; they own vast lands on the outskirts of Chang'an and pay no land and labor tax at all.

If these families are classified as "super rich households" and taxed according to the actual area of their landholdings, and even at the highest rate,

What would the result be?

Even with your toes you can tell the new tax law could never be carried out!

In the end it would only cause these nobles to mobilize their representatives in the court to cause trouble; if they fail to achieve their aims, they might even unite and rebel!

These local aristocratic families are the very foundations of Tang! If those foundations are torn down, can the house of Tang still stand?

The Tang Emperor Li Longji can sit peacefully and leisurely in the Xingqing Palace because he has received the strong support of these nobles.

First, a politician must recognize who are his friends and enemies; who needs to be dealt with, and who can be won over.

Obviously, whether it's Brother Ji or Li Linfu, they are the biggest beneficiaries of the current political‑economic system, and they will not change their fate at any cost.

That's not reforming the tax system; that's a family's collective suicide!

Thinking of this, Li Linfu slowly released Fang Chongyong's sleeve, brushed away nonexistent dust from his own sleeve, and though his face bore a smile, the smile looked utterly helpless.

He forced a laugh and said:

"The land and labor tax is a national policy set by Emperors Taizu and Taizong; the previous Sui dynasty also operated it for decades. The Two‑Tax System you mention is still too rash.

Governing a great state is like cooking a small delicacy; this kind of tiger‑wolf remedy, better left unmentioned, better left unmentioned."

"I, the lowly official, am merely offering this view. In my position, the matters I must be responsible for lie in Anxi and Xiaoboli, a thousand li away."

"I am merely Qiu Ba, who dons armor and wields a sharp blade, just a soldier taking his rations."

"How to collect taxes, from whom, and how much, are major issues that the court officials must consider; I dare not speak rashly."

That would be inappropriate!

I am only concerned with the frontier troops' pay and provisions.

Fang Chongyong smiled and said, already hinting that he had no interest in state affairs.

"Fang Jiedushi is truly overthinking.

You lead troops on an expedition to Xiaoboli; the court cannot let the soldiers starve.

Rest assured, I will do my utmost to ensure that Fang Jiedushi's campaign has no worries."

Li Linfu stroked the beard on his chin and laughed, unknowingly having changed the title, removing the "Little" before Fang Jiedushi.

"With the Right Chancellor's words, I can be at ease."

Fang Chongyong nodded, then fell silent. He said nothing yet did not leave, as if waiting for Li Linfu to speak first.

The standoff lasted a long time, and finally this Tang Right Chancellor could no longer hold his composure, and asked:

"In Chang'an and the prefectures of Henan and Jiangnan, the matter of issuing Jiaozi has been fully entrusted by the sage to me; I can decide all major and minor regulations with a single word.

This law was first implemented by Fang Jiedushi in Hexi, so Fang Jiedushi is naturally the most familiar with it.

I wonder whether the Jiedushi has any experience or lessons to share with me?"

Li Linfu wasn't unaware that whoever speaks first will be manipulated, yet Fang Chongyong had already expressed his intention not to interfere with Jiaozi. In other words, this person is already out of it, oil

The saying "desirelessness makes one firm"—if Li Linfu does not speak, Fang Chongyong could sit in this study until the end of time without uttering a word!

Anyway, he's not the one in a hurry!

"Right Chancellor, the success or failure of issuing Jiaozi does not depend on the broad strokes but on the details. A small error can lead to a thousand‑mile mistake.

The Right Chancellor, busy with myriad affairs daily, likely has no time to divide himself; he must find capable people to implement it, to ensure the issuance of Jiaozi proceeds steadily and orderly.

Of course, that person cannot be me. In a couple of days I will return to Liangzhou, preparing to campaign to Xiaoboli; military matters cannot be delayed.

The Right Chancellor might as well promptly select a few capable individuals to handle this, and I will meet them to discuss strategies, gathering many ideas.

Then let these people draft the detailed rules for issuing Jiaozi, submit them to the Right Chancellor for review; truly, half the work yields double the result.

Fang Chongyong clasped his hands, performed a salute, and said.

Li Linfu remained silent for a long time, then finally nodded and said: "Tomorrow, the prime minister will hold a banquet at the Apricot Flower Pavilion; when the time comes, Jiedushi Fang need only be present."

"Very well, then I won't disturb the prime minister's rest; I take my leave."

Fang Chongyong rose to his feet, bowed his thanks to Li Linfu, and said.

"The prime minister permits Jiedushi Fang to continue issuing various versions of the exchange notes in Liangzhou without needing to constantly report to the court."

"And other prefectures do not possess this exclusive right; they must have it uniformly allocated by the central authority."

As Fang Chongyong stepped one foot out of the study door, Li Linfu's distant voice came from behind.

"Thank you, prime minister."

Having finally obtained what he wanted, Fang Chongyong turned and performed a deep, respectful bow to Li Linfu. Talking with a smart person saves effort—he didn't even need to spell out exactly what he wanted, and Li Linfu automatically provided it.

Of course, if Prime Minister Li didn't bring it up today, Fang Chongyong would certainly raise the matter tomorrow over drinks at the Apricot Flower Pavilion.

"If the exchange notes are handled properly, they will surely bring our Great Tang to an unprecedented peak, and the prime minister will likewise earn a place in history because of it."

Fang Chongyong offered his compliments without betraying any emotion.

"Thank you for the kind words; with the exchange notes, we indeed no longer need to cling to the Three Departments' tax laws."

Li Linfu let out a weary sigh, and the stone weighing on his heart finally fell to the ground.

If Fang Chongyong wanted nothing at all, he would truly worry this was a huge trap. Since what Fang Chongyong seeks is the right to independently issue exchange notes in the northwest, it is understandable that he would come to the manor today and say all this.

After all, no one gets up early without profit—that's just how the world works.

(End of chapter)