Late Han Zhao Tang

Chapter 463 Taxation and Strategy

May, Chang'an.

How is spring planting going this year?

On the veranda, Zhang Yu, dressed in casual clothes, sat and discussed matters with Zhong Yao, Du Ji, Yu Yi, and several others.

“Since the beginning of this year, in accordance with His Highness’s decree, the people have not been burdened with corvée labor, and the soldiers and officials have not suffered from conscription. According to the reports from the governors, there are no floods or droughts in the six prefectures of Yin, Hai, You, Bing, Sili, and Yong, and the counties and prefectures are all engaged in large-scale agricultural activities,” Zhong Yao said.

"According to the tax law, how much grain will be collected this year?"

Cui Yan, who knew the details by heart, reported: "Your Majesty, Bingzhou has 80,000 households, the capital region has 300,000 households, Yongzhou has 170,000 households, Haizhou and Yinzhou together had 320,000 households, and Youzhou has 70,000 households. In total, the registered households of these six prefectures number 940,000."

In the past, the population of the three prefectures of Guanzhong plus the two prefectures of Hedong and Henan was 260,000 households. Now, Hongnong and Henan Yin are included in the capital region. Although Henan Yin has a small population, Hongnong Prefecture has tens of thousands of households, so the total population is about 300,000 households.

"According to the household tax system, each household contributes three shi of millet, one bolt of silk (or cloth), and five liang of cotton. This would yield a total of 2.82 million shi of grain, 940,000 bolts of silk (or cloth), and 4.7 million jin of cotton. The court intends to transfer a large amount of taxes to Chang'an, but considering the long distances, the retention of taxes in various prefectures and counties, and the losses during transport by canal and land, the amount of silk and cotton is taken into account. Only half of the grain will be transported to Chang'an."

"Now Your Highness intends to send troops to conquer the south. If all the grain from Hai and Yin is mobilized, there will be 640,000 shi. However, if grain is transferred from the people of Hebei, there will be 2 million shi of grain. If Your Highness mobilizes 100,000 troops and 100,000 laborers, it can last for half a year."

Zhang Yu looked at Yu Yi and asked, "What is the salt tax situation in Hedong?"

"Your Majesty, the world is in chaos, and people are mostly bartering. Salt tax now accounts for half of Tang's tax revenue, which is the same as tax revenue." Yu Yi cupped his hands and said, "Now that the salt revenue can be used to transfer grain, I can provide Your Highness with another two million shi of grain, which is enough to support Your Highness's expedition for a year."

"How much grain is equivalent to one stone of salt?" Zhang Yu asked.

“About four shi of grain!” Yu Yi said.

There's a famous saying in finance: "Pluck the most feathers from the goose and hear the fewest cries." The same principle applies to taxation. Salt tax was simple to collect, requiring no complex and large bureaucratic system, and its collection was difficult to notice. Therefore, salt tax became one of the most crucial tax revenues in successive dynasties.

As Yu Yi said, the world is in chaos, war is raging, and currency is difficult to circulate. Copper coins are no longer used as a value anchor. Instead, people exchange salt for rice, using rice as the value anchor. Therefore, people prefer bartering. Salt tax is collected in the exchange with rice. It can be said that the people are aware of the high price of salt, but they are unaware that they are paying a tax in disguise.

If the Eastern Han Dynasty had levied a large-scale salt tax, its fiscal situation might not have been so strained. The fiscal lessons of the Eastern Han Dynasty were learned by subsequent dynasties, who preferred to undervalue agricultural taxes while still collecting salt taxes. For example, in the Northern Song Dynasty, salt taxes accounted for a higher proportion of agricultural taxes, and by the Southern Song Dynasty, this proportion had reached as high as 60%.

Zhang Yu knew that collecting taxes was not easy, so he paid special attention to the collection of salt tax and set high tax rates. Otherwise, the revenue from state-run salt and iron monopolies would not have reached the same level as agricultural tax.

Zhang Yu said with emotion, "When I first occupied Bingzhou, the annual grain was only a little over 200,000 shi, and I was also plagued by locust plagues. Now, I can actually use 2 million shi as military provisions, which is something I could not have predicted back then."

Yu Yi stroked his beard and smiled, saying, "At that time, the military pay was owed for many months, and the officials had no salary to receive. The soldiers were about to complain. Fortunately, Taiyuan was able to provide funds and provisions. Your Highness controls three prefectures in Hebei and greatly enriches the country's population. At present, there is no need to worry about military pay, provisions, and salaries. There is even surplus money available, all of which rely on the salt tax."

Zhang Yu instructed, "The taxes on household registration and salt are of great importance to the imperial court. I hope that the two departments will work together with one heart and one mind."

"promise!"

"Your Highness, although the autumn tax has not been paid this year, there are still 500,000 shi of military rations in Hebei. I wonder when Your Highness intends to send troops?" Du Ji said.

Zhang Yu pondered for a moment and said, "Thanks to the support of Man Chong and Hao Zhao, Yuan Tan led his remaining troops to retreat to the north bank. I intend to advance along multiple routes, using Yuan Tan to attack Yuan Shang, making it difficult for Yuan Shang to leave Qingzhou. Meanwhile, I will lead the main army across the river from Liyang to first attack Yuan Xi and Zhang Miao in Yanzhou."

"At that time, Yuan Shu knew that I was going to the south and would surely raise troops from the Central Plains to fight against me. I tried my best to defeat Yuan Shu in the Central Plains, and divided my troops to sweep through the counties. Then I led my troops east to conquer Xu and Qing, captured and killed Tao Shang, Gao Gan, Yuan Shang, Yuan Tan and other officials, and accomplished my goal in one battle, unifying the provinces of Henan."

After discussing with leaders such as Xun You, Jia Xu, and Tian Feng, a plan for unifying the Central Plains was finalized: first, defeat Yuan Shu's army that was marching north to compete for supremacy; then, take over Yan and Yu provinces; and finally, lead troops eastward to conquer the coastal areas.

With most of the prefectures and counties in Henan under his control, Zhang Yu could then look south to Jingchu, east to Huaiyang, and west to Bashu. He could then use his military force according to the situation in these three areas, either to conquer Bashu, or to conquer Yanghuai, or to put pressure on Jingxiang.

"First we attack Yanzhou, then Yuzhou, and finally the coastal region. This will likely take a long time, and it will take many years to achieve such a feat!" Zhong Yao said with a frown.

After a moment's thought, Zhong Yao advised, "With months of continuous campaigning, the soldiers are likely exhausted and unable to perform well. Therefore, Your Highness, why not first take Yanzhou, and after Zhang Miao and Yuan Xi have been defeated, and then defeat Yuan Shu's army, withdraw your troops to Hebei for temporary rest? Later, you can turn your attention to the coastal areas, occupy Qing and Xu, and then launch a southern campaign against Yuan Shu to take Yu and Jing provinces." Zhang Yu waved his hand and said, "Military matters require a balance of urgency and restraint. Yuan Shu occupies Jing and Xiang and also controls Yu province. If we cannot take it in one fell swoop, he will make a comeback and become a threat to our southern campaign."

Zhong Yao's words were not without merit, but after discussion among Zhang Yu and his advisors, they unanimously agreed that they should first conquer the Central Plains and force Yuan Shu to retreat to the Jingzhou region. At that time, seeing Yuan Shu's weakness, Liu Bei and Cao Cao would most likely pounce on him and attack. Zhang Yu, on the other hand, could take advantage of Chen's weakness to launch a southern expedition and incorporate Chen's navy.

After a pause, Zhang Yu considered for a moment and said, "As for the timing of the expedition, we can launch a southern campaign in the autumn. At that time, the floods in Henan will have subsided, and there will be no dampness to cause harm, which will be advantageous for the troops in Shuofang to use their strength."

"The military campaign is tentatively scheduled for August 17th!"

The climate in Hebei and Guanzhong is dry, while the climate in the south is humid. The damp weather poses a challenge to the northern troops. Therefore, considering the climate, Zhang Yu preferred to wage war in autumn and winter. Especially in autumn and winter, the lower river levels restrict the movement of southern boats, which is advantageous for warhorses.

"promise!"

Zhong Yao responded, then took out a note from his pocket and began to engrave on it with a knife.

Seeing this, Zhang Yu smiled and asked, "I have served the Prime Minister for many years and have never seen you copy down important matters. Why are you suddenly holding a sword and a tablet?"

Zhong Yao glanced at the note, shook his head, and sighed, saying, "I am getting older and my strength is declining. I often forget things that have happened this year, especially since court affairs are so complicated. I am afraid I may have overlooked something if I rely solely on what I hear and see!"

Zhong Yao was forty-nine years old, and his hair had turned quite gray from the hard work of military and political affairs. However, despite his gray hair, his spirit remained undiminished due to his high position.

Zhong Yao's words made Zhang Yu ponder for a moment, wondering whether they were unintentional or deliberate remarks by Zhong Yao.

Regardless, as a meritorious official of Zhang Yu, Zhong Yao deserves Zhang Yu's support and respect.

"hehe!"

Zhang Yu smiled and said, "In the past, Jiang Shang was able to assist King Wu even at the age of eighty, while you are not yet sixty years old. How can you say you are old?"

As he spoke, Zhang Yu poured tea for Zhong Yao and said with a smile, "The world is not yet at peace. Even if I were to bring peace to the world, I would still need you to govern China well."

"I am terrified!"

Zhong Yao held the teacup with both hands and said respectfully, "I will serve Your Highness with utmost loyalty!"

In fact, Zhong Yao's words were a test. He saw that since Zhang Yu founded the country, he had divided his power among Du Ji, Yu Yi and others. Therefore, for his own sake, he decided to test Zhang Yu to see if Zhang Yu was afraid of his prestige in the country and intended to support Du Ji and Yu Yi.

However, after testing him, Zhang Yu still valued him and even expressed his willingness to let him continue as prime minister, which reassured Zhong Yao a lot.

"Your Highness, Xue Xia has sent an urgent report!"

Guo Tu walked along the corridor, presenting the memorial in his hand.

"What's the matter?"

"Hao Meng, a general under Lü Bu, rebelled after being instigated by Yuan Shu. He has now been executed by Lü Bu, and Chen Gong appears to be among those involved. Lü Bu has agreed to send his family to Chang'an, and we hope Your Highness will send generals to escort them along the way," Guo Tu said.

"color!"

Zhang Yu smiled and said, "Lu Bu is afraid of Yuan Shu, and now he has sent his family members. Lu Bu will be at my beck and call!"

(End of this chapter)