Chapter 1368: Considerations on the Tax System, the Second Governance of Shanyang

"Your Majesty, this is a proposal for exempting the summer tax of this year in the circuits and prefectures of Henan, Hebei, Hedong, the Yan Mountains, and Shanyang!" Zhao Pu produced another memorial and presented it to Emperor Liu.

This was customary practice—in past campaigns that mobilized troops on a large scale, after the war concluded, the prefectures and counties that had been conscripted for corvée labor would receive appropriate tax reductions as compensation.

This time was no different; it was also the most important point in implementing the policy of recuperation—reducing the burden on the people and likewise easing the load on local governments. In the past, Emperor Liu would simply wave his vermilion brush and grant approval.

But this time, Emperor Liu unexpectedly showed some hesitation. After carefully reviewing the document, he raised his head to look at Zhao Pu, waved the memorial in his hand, and said directly: "Exempting the summer tax is only proper, but this time, I have decided not to follow the old precedent—there should be distinctions. The aforementioned circuits and prefectures all rendered meritorious service in the northern expedition, but the contributions of men and effort varied in degree—they cannot be treated uniformly!"

"Then what is Your Majesty's intention?" Zhao Pu asked for guidance.

"The central government will determine the exemption amounts based on each circuit's contributions; the circuit governments will likewise set tax quotas according to the actual conscription of manpower from their prefectures and counties!" Emperor Liu's meaning was perfectly clear.

At this, Zhao Pu's brow furrowed slightly, but after a moment's deliberation, a glimmer of something unusual passed through his aged eyes. This matter, too, could touch upon the Great Han's taxation system.

The Great Han's Two-Tax Law basically followed the Tang model. Though adjustments had been made to suit the times, the core spirit had not changed much. Put simply, each year the court set a tax quota based on the previous year's fiscal revenue and expenditure, then apportioned it to the local circuits and prefectures, which levied according to the people's property—collecting money by household grade and grain by land acreage, with the wealthy paying more and the poor paying less.

But this was ultimately an idealistic tax system. In actual implementation, it was invariably accompanied by all sorts of problems, the most notable being the gap between rich and poor.

Even determining the amount of one's property was difficult to settle. In the early years, relative fairness could still be achieved, but as society developed, these contradictions accumulated continuously. With the exchange of favors, the trading of power for money, and the comings and goings of merchants and the movement of populations, even relative fairness was destroyed.

Household grades determined tax payments, yet the result was that the rich did not pay more and the poor did not pay less. As for land acreage, with private land transactions growing ever more frequent, even the transaction taxes could hardly keep up, and underreporting was entirely commonplace.

Emperor Liu was not unaware of these increasingly prevalent situations, but for the Great Han, things had not yet reached the point where drastic reform was necessary, and so he had not sought change.

It was precisely the fiscal strain produced by this northern expedition that stirred Emperor Liu's thoughts anew. He was by nature a man of much deliberation—distant worries and near concerns always accompanied him.

This tax reduction policy once again aroused Emperor Liu's considerations of fairness in the tax system, though of course the primary concern remained the stability of national fiscal revenue.

In matters of exemption, perhaps more reasonable arrangements should be made between circuit and circuit, prefecture and prefecture, county and county, household and household—this was Emperor Liu's thinking.

However, implementing it properly was not so simple. It required close coordination between the central government and local authorities, smooth transmission of orders from above to below, and the supervisory mechanisms operating at full capacity.

Of course, this could also be seen as an experiment, a groundwork. If this matter could be handled beautifully and properly, then when the time came to truly reform the tax system in the future, there would be greater confidence.

It had to be said that in Emperor Liu's heart, taxing according to land holdings was the more reasonable approach, and that would be a tax system with greater vitality. In the past, he had not felt the urgency of this, and he had harbored a somewhat complacent mentality, unwilling to lightly shatter the nation's stable and upward development.

After all, once the tax system moved, it would inevitably offend a large group of vested interests. The meritorious nobility could still retain a portion of tax-exempt land, but most officials, merchants, and landowners would not enjoy such privileges. Yet it was easy to imagine that if their interests were truly touched, they would not pass through peacefully.

Zhao Pu perhaps could not discern that Emperor Liu's thoughts had already ranged so far ahead, but he sensed something of it. At the same time, Zhao Pu himself also had some ideas regarding the Great Han's tax system.

He was a man of ambition. In his post, he was unwilling to be merely a placid chancellor; he wanted to accomplish achievements truly worthy of being remembered in history. In a great matter like the northern expedition, the protagonist was naturally Emperor Liu, but what of other affairs? Zhao Pu had in fact been quietly brewing some striking initiatives, and the tax system was one area where he could make a start—it was, after all, a direction beneficial to both the state and the people.

However, at this moment Zhao Pu did not reveal this. He merely responded: "Your servant will coordinate with my colleagues to produce concrete measures and oversee this matter!"

"Good!" Emperor Liu nodded. "With Minister Zhao handling affairs, I am at ease!"

"Your Majesty overpraises me; your servant does not deserve it!" Zhao Pu replied with courteous humility.

"Your Majesty, this is the list of official promotions and transfers for the northern circuits and prefectures after the northern expedition, submitted by the Ministry of Personnel!" At this moment, Song Qi also produced a memorial and presented it to Emperor Liu.

"The northern expedition was protracted. In the north, especially the two circuits of Shanyang and Liaodong, the devastation of war was severe—scenes of ruin everywhere, urgently in need of recovery. And the first priority is selecting capable and experienced officials—if officials are well deployed, results can be achieved with half the effort!" Emperor Liu perked up at once and said with a light smile.

Emperor Liu scanned through it. This time the scale of personnel transfers was rather large—besides the circuits and prefectures like Shanyang and Liaodong that needed continued replenishment of officials, it also included routine promotions and demotions, as well as officials who had rendered merit and service in the northern expedition.

The list involved several hundred people, and Emperor Liu naturally lacked the energy to examine it in detail. He glanced over the names of officials in the two more critical circuits of Shanyang and Liaodong, then set it down and instructed Song Qi: "After you have verified it, if there are no problems, submit it to the Crown Prince for review. If there are no objections, then issue the decree!"

"Yes!"

Emperor Liu considered for a moment, then looked at Song Qi and said: "Why has no candidate been proposed for the post of Administration Commissioner of Shanyang Circuit? Chu Zhaofu holding two circuits concurrently is merely a stopgap measure—it cannot last. Before I returned to the capital, I also promised him. Spring has already arrived now; this matter cannot be delayed!"

"The post of a circuit governor requires Your Majesty's personal selection; your servants dare not presume to decide." Song Qi said.

Emperor Liu smiled slightly: "The decision rests with me, but can you not hold a court recommendation?"

"Your servants believe the selection should be made from among the principal officials of the various ministries and bureaus—thus the standing would be comparable!" Zhao Pu offered.

Upon hearing this, Emperor Liu rose slowly, paced a few steps, turned his head to look at Song Qi, and said: "Minister Song, would you be willing to go to Shanyang for another term?"

At these words, the three chancellors each wore different expressions. Li Ye was greatly surprised and could not help but steal a glance at Emperor Liu—he naturally recalled his own advice given back beyond the northern frontier; had His Majesty indeed adopted his suggestion?

Zhao Pu's brow tightened slightly. In the Hall of State Affairs, any personnel transfer was worth consideration, let alone one involving Song Qi, the second chancellor. Though Zhao Pu and Song Qi had their conflicts on certain matters, they had also cooperated for so long. A sudden departure—for Zhao Pu, it was hard to say whether that was good or bad news; a replacement might not be as compatible as Song Qi. Still, Zhao Pu's mind turned for a moment, and he said nothing. Since the Emperor had spoken, he would sit back and observe for now.

Song Qi was momentarily stunned. Meeting Emperor Liu's gentle, slightly smiling gaze, he considered briefly, then bowed: "If Your Majesty has a charge, your servant would die ten thousand deaths without hesitation!"

"Minister Song is truly a pillar of the state, a model for all!" Emperor Liu was greatly pleased by this declaration and said with a smile: "To be frank with you all, I have pondered the Shanyang appointment for some time. The Great Han does not lack talent for governorship, but Shanyang is special. After much deliberation, only Minister Song is the most suitable, and the one who can most reassure me—I entrust Shanyang to him!"

"Thank you for Your Majesty's trust!" Hearing Emperor Liu's meaning, how could Song Qi not know that his mind had long been made up? He harbored little dissatisfaction and cupped his hands in response.

"We are still in the midst of the festival season—no need to rush to your post. Rest a while in the capital; when the spring warms and the flowers bloom, then set out on your journey!" Emperor Liu's manner grew even more gracious: "When the time comes, I will personally see you off. This second governance of Shanyang can become a fine tale in the officialdom of the Great Han!"