Late Han Zhao Tang

Chapter 514 Third Class, Ninth Rank: Taking from the Rich to Help the Poor

200 AD, the second year of Shenwu's reign.

Zhang Yu returned from Xiangyang and took the Wuguan Road into Guanzhong. The two places are more than a thousand miles apart. The Wuguan Road is located in the Shangyu region, which is mostly mountainous due to its location at the border of the two countries. As a result, it has a lot of bandits.

Liu Xiong, a man from Guanzhong, gathered more than a thousand families and established a separatist regime in the border areas of Jingzhao, Hongnong, and Shang counties. He was recruited by Yuan Shu and became a general. When Zhang Yu conquered Chen, he sent Xu Chu to defeat Liu Xiong and resettle his followers as commoners in the Shangluo and Shangxian areas.

Therefore, when Zhang Yu passed through Shangyu, he saw that officials from Jingzhao had already gone deep into the villages and organized the people to carry out large-scale construction and reclaim old wasteland. The scene was full of vitality, which pleased Zhang Yu. So he summoned Du Xi, the magistrate of Shang County.

Du Xi, courtesy name Zixu, was a native of Dingling County, Yingchuan. Due to the chaos of the world, he fled to Jingzhou. When Zhang Yu unified Hebei, Du Xi saw that Zhang Yu had the potential to unify the world, so he went to Guanzhong to seek refuge. Now that Zhang Yu has unified the Central Plains, many county and prefectural official positions are vacant. Du Xi was valued by the Ministry of Personnel and was appointed as the magistrate of Shang County.

In just six months since Du Xi took office, Shang County, which had suffered greatly from the war, has gradually recovered. Abandoned fields have been reclaimed, and all registered residents have land to cultivate, bringing a sense of peace to the people. Du Xi even took advantage of the winter cold to mobilize the people to repair the post stations, providing lodging for travelers from Guanzhong and Jingzhou, which was highly praised by those who passed through.

Therefore, when Zhang Yu met Du Xi, he praised and encouraged him greatly, citing him as a virtuous official. Du Xi, needless to say, was favored by the emperor and, after Zhang Yu left, worked even more diligently, determined to be promoted as soon as possible.

After a month of slow march, they finally arrived in Chang'an in May. At that time, the civil and military officials, led by Zhong Yao and Yu Yi, went out of the city for ten miles to welcome the army.

"Greetings, Your Majesty! Congratulations on your unification of China!"

"Congratulations on my king's unification of China!"

Hundreds of officials and ministers knelt down to welcome Zhang Yu, led by Zhong Yao.
"Gentlemen, you may dispense with the formalities!"

Standing atop the imperial carriage, Zhang Yu seemingly supported the crowd from the air, and said in a deep voice, "My ability to unify China is largely due to the strategic planning of you all."

"Thank you, Your Majesty!"

"I have been away from the capital for a long time, and I am grateful that the Prime Minister has come to accompany me in his carriage."

"promise!"

Zhong Yao rose nimbly and, amidst the envious gazes of the assembled officials, boarded Zhang Yu's imperial carriage.

"Snapped!"

With twelve cracks of the whip, the guide announced loudly, "The Tang Emperor is returning to court; all bystanders, make way!"

Elite cavalry led the way, spears and halberds in hand, moving slowly with their reins in hand. Infantry escorted them, carrying banners on their shoulders, striding forward with their chests out.

Inside the magnificent carriage, Zhang Yu sat half-reclined, while Zhong Yao sat upright, not daring to be impolite.

Seeing this, Zhang Yu said, "It's just the two of us now, Prime Minister, there's no need for such formalities."

"Your Majesty captured Yuan Shu and pacified the Central Plains. It took only a year to conquer five provinces. Now, of the thirteen provinces at the end of the Han Dynasty, Your Majesty already owns nine. Congratulations, Your Majesty!" Zhong Yao said, slightly relaxing.

Zhang Yu lamented, “In the past, the First Emperor unified the six kingdoms and possessed the four seas, but in his later years he lost the empire. How much more so I, who only hold the Central Plains and have not yet conquered the Yangtze River. Therefore, if my rule is lost, my achievements will also be overturned. Thus, it is easy to pacify the world, but extremely difficult to govern it. China is in dire need of reconstruction, and we must be cautious in choosing our policies!”

Zhong Yao said, “I have heard that it is easy to win a battle, but difficult to maintain it. Your Majesty is thoughtful and far-sighted, mindful of potential dangers even in times of peace. With your achievements already evident and your virtuous teachings widespread, what is there to worry about in the collapse of the state?”

"Reconciliation of moral education?"

Zhang Yu, having gained some insight, asked, "When I arrived in Jingzhou, a wise man advised me, saying that China's taxes are harsh, benefiting the wealthy and powerful while harming the common people. Now, I think he is right. Our household tax is collected fairly, without any imbalance; it is only because the powerful are getting richer that the common people are getting poorer. I want to implement a new household tax system. What do you think?"

Zhong Yao stroked his beard and pondered for a moment, then said, “The people of Guanzhong have been criticizing the tax system. I have discussed this with Lord Du and we have proposed to distribute taxes according to the wealth of each household, with those who are rich paying more and those who are poor paying less. This way of implementing taxes will not only quell public grievances but also fill the national treasury.”

Although the tax law currently implemented by Zhang Yu is levied on a household basis, it still adheres to the basic tax principle of "those who own land shall receive rent, those who own a family shall receive taxes, and those who own a person shall receive corvée labor".

The world is currently in chaos, with many fields lying fallow. The people don't lack land to cultivate, but rather an orderly environment. Therefore, the people have land to cultivate, and cultivation allows them to produce taxes. However, the current problem is that everyone is not treated equally; those who produce more do not pay more. Thus, while the people will not rebel, they will certainly harbor resentment.

At present, China is largely unified, and the territory under Zhang Yu's rule is vast. If the tax system cannot be revised in time, it will be difficult to correct later. This will not only affect tax collection, but also cause resentment among the people and enrich wealthy families.

"Do you have a detailed account?" Zhang Yu asked.

Zhong Yao said, “Since the Han Dynasty, although there has been no distinction between large and small households, there has been the saying of upper-class households, middle-class households, and small-class households. I think they can be divided into three classes: upper-class households pay more taxes, middle-class households pay slightly more, and small-class households may be able to reduce taxes.”

"How can a third-class family be distinguished as high or low?"

Zhang Yu shook his head and said, "At least three classes and nine grades are needed. The upper-class families should contribute gold and silver, the middle-class families should contribute grain and silk, and the lower-class families should contribute labor and grain. Only when each of the three classes contributes can the country operate smoothly and the people not be burdened by heavy taxes."

Each household had to pay three shi of grain, plus silk and cotton, and perform corvée labor, making the tax burden heavy. However, this was during a time of war, when military affairs took precedence, forcing the exploitation of the people.

Now that the Central Plains are at peace, Zhang Yu has to consider more. Continuing to exploit the people with unfair taxes is not a long-term solution; he needs to formulate a new tax law to win the hearts of the people. During his return journey, Zhang Yu has already made some progress on this new tax law.

According to historical trends, or rather, according to the actual social situation, allowing people to pay their corvée labor in lieu of payment is a historical trend. The poor, lacking food and clothing, certainly don't lack physical strength. Therefore, having the lowest-class people contribute their labor to serve the wealthy is the right path.

In addition, regarding the different taxes paid, the lower and middle classes belong to the small-scale peasant economy, producing and selling their own goods, so it is best for them to pay taxes in kind.

Wealthy families in the upper and middle classes already hoarded large amounts of gold, silver, and copper coins. Asking them to pay taxes on daily necessities would likely hinder the circulation of currency. Paying taxes in gold and silver would require them to sell their goods, indirectly promoting regional economic circulation and enriching the region's means of production.

The above-mentioned three-tiered and nine-level strategies not only contain Zhang Yu's political thought, but also draw on historical experience.

Historically, from the time Cao Cao established the rent-and-tax system, the system of levying taxes on a household basis continued until the Sui and Tang dynasties. Due to unfair tax collection, the rent-and-tax system was revised throughout history.

For example, the Northern Qi dynasty established a three-tiered, nine-level system corresponding to the Nine-Rank System, and the Tang dynasty continued this nine-level system for tax collection. During the reign of Emperor Daizong of Tang, the lowest-ranking households paid 500 cash, while the highest-ranking households paid 4,000 cash, a difference of eight times.

However, an eight-fold difference was not enough for Zhang Yu. To him, even if the taxes paid by the upper-class households were ten times higher than those paid by the lower-class households, it was not too much; the upper-class households had to make up for the lower-class households' losses.

Zhong Yao pondered for a while, then asked, "How do we estimate the difference between the nine ranks?"

Zhang Yu raised an eyebrow and said calmly, "With a tax of one-twentieth, a large clan with hundreds of acres of land can earn 30,000 shi a year. With a tax of one-twentieth, that's only 600 shi."

"Six hundred shi!"

Zhong Yao was immediately surprised. If a superior family paid 600 shi (a unit of dry measure) of grain tax annually, it would be equivalent to the grain tax paid by 200 common families. If there were a thousand or so such families, it would be equivalent to the grain tax paid by 200,000 households.

After his initial shock subsided, Zhong Yao's face showed worry. Imposing such high taxes on powerful families might provoke strong resistance.

"Your Majesty, could the taxes for the upper-class families be reduced?" Zhong Yao asked cautiously.

"Feeling sorry for the family fortune?"

Zhang Yu had a half-smile on his face and asked in return.

"No!"

Seeing Zhang Yu's hawk-like eyes staring at him, Zhong Yao, who was usually highly regarded, felt somewhat uneasy.

Swallowing hard, Zhong Yao coughed and said, "Although I have acquired land, it is not because I am reluctant to part with it. Moreover, the fiefdom granted to me by Your Majesty is enough to ensure that I have enough to eat and wear and that my descendants can enjoy a life of comfort. It is just that I think Your Majesty used to charge three shi per household, but now suddenly charges six hundred shi, a difference of three hundred times. I am afraid that wealthy households will be dissatisfied."

Zhang Yuping calmly replied, "The matter is difficult, but is it more difficult than conquering the world?"

"When I was young, I studied at the Wang family's residence. Their fields stretched for miles, their estate was like a city, and they had thousands of retainers. Yet, such a wealthy family paid less in taxes than a hundred households. How could the Later Han dynasty's treasury have any money?"

As he spoke, Zhang Yu sighed again, saying, "During the reign of Emperor Ling, the treasury was empty, so they had to buy and sell the Three Dukes. Cao Song offered one hundred million, which shows how wealthy the Cao family was. But what does the wealth of a powerful clan have to do with the country? When the world perishes, the Cao family will be no different from the Han dynasty!"

"What Your Majesty says makes sense, but it greatly affects the interests of powerful clans. Therefore, I believe we should proceed slowly. Once the world is at peace, we can implement the nine-tier household tax system again."

The tactful Zhong Yao knew that this matter had a huge impact and that it would be very difficult to accomplish, so he had no choice but to delay.

Seeing this, a look of disappointment flashed in Zhang Yu's eyes. In terms of talent, Zhong Yao had the ability of a prime minister, but he was really lacking in determination and was too smooth-talking to do the work of Shang Yang.

Zhang Yu quickly concealed his disappointment and nodded, saying, "Yuan Chang's words are not without reason. We should first establish a system of three classes and nine grades for families to appease the people. As for the taxes on the upper-class families, you can discuss that first, and I will consider it further."

Although Zhang Yu was the founding emperor, he couldn't make all decisions unilaterally. Especially in matters of state, Zhang Yu needed to consult with Zhong Yao, who was also a founder of the dynasty. If a conflict arose with Zhong Yao, although Zhang Yu would be the victor, the final result would be an imbalance in the court, making many things even more difficult to advance.

Governing a large country is like cooking a small fish. Since Zhang Yu understood this principle, he did not mind first introducing a nine-level household tax system, and then levying additional taxes on the upper-class households when the time was right.

"Your Majesty is wise!"

Zhong Yao lowered his eyes slightly and responded with his hands clasped in greeting.

Zhong Yao could actually guess some of Zhang Yu's inner thoughts. However, Zhong Yao's refusal was not only due to his own personality but also related to his political career plans.

He was fifty years old and knew he couldn't hold the position of prime minister for many more years. And even if he wanted to, once the world was at peace, Zhang Yu would inevitably clash with him sooner or later.

Even a wise man like Xiao He nearly lost his integrity when he encountered the elderly Liu Bang, let alone the young and strong Zhang Yu. Therefore, Zhong Yao planned to retire gracefully at the right time and relinquish the position of prime minister.

(End of this chapter)