Late Han Zhao Tang

The third year of Shenwu, the first month.

The Ministry of Personnel presented a three-tiered, nine-level household system and two taxes on social status and wealth. After approval by the Chancellor and the Minister of Finance, it was finally handed over to Zhang Yu. Zhang Yu then had the Secretariat review and draft an edict before stamping it and issuing it to all the prefectures and counties in the country.

The new tax system was first introduced in Chang'an and its surrounding areas, which aroused great attention from the people and scholars in the area.

Inside the tavern, three city dwellers sat in a corner, pouring wine and discussing politics.

A local resident with a Taiyuan accent said, "The imperial court has issued an edict ordering the government to levy taxes based on household wealth, divided into three grades and seven levels. The tax levied on each level is different, with a difference of five dou of rice between levels. I wonder which grade the officials will classify us into?"

"Two shi (a unit of dry measure) is for the lower-middle class households. The middle-middle class households are classified as upper-class households and are required to pay five shi of grain. So it's best not to be classified as an upper-class household," said the merchant from Hedong.

“Unless they are wealthy families in the county, who can afford to pay five shi of grain a year?” a Shangdang merchant said dejectedly. “It is already difficult to pay two shi of grain a year, let alone pay silk and cotton and perform thirty days of corvée labor. In my opinion, this is nothing more than the court’s disguised form of taxation.”

The merchant from Hedong took a sip of wine and said, “Regardless of the circumstances, the corvée labor system is a good policy for the benefit of the people. You and I travel east and west, selling local goods. In the past, corvée labor often delayed our business. From now on, we can pay the government a fee to exempt us from corvée labor, and the government will recruit people to perform corvée labor according to the situation.”

"what!"

The Shangdang merchant's eyes lit up, and he said, "The corvée fee is indeed a good policy, but I wonder how much the tax will be? Don't make the fee too high, so that ordinary people can't afford it!"

The merchants from Hedong knew a lot and said, "According to the statistics of the thirty-day wages for laborers, the more laborers recruited in the capital area, the more laborers are paid, while the less laborers recruited from the family are paid."

The Shangdang merchant nodded and smiled, saying, "If we really calculate it based on the thirty-day wage for laborers, it's not expensive. You and I have been running around for thirty days, and the money we've earned is more than thirty days' wages!"

The implementation of the conscription system was essentially the government using its powerful influence to balance the interests of different social classes.

The upper and middle classes of society strongly resisted corvée labor and often used various means to evade it. Now that substitute corvée labor is permitted, it is more acceptable to upper and middle-class families. Poor people, lacking money, cannot afford the corvée labor fees and are therefore forced to perform it. However, with the implementation of the labor service recruitment system, they can perform corvée labor for others, earning wages to support themselves.

Historically, even though Wang Anshi's New Policies were abolished, Sima Guang had no choice but to reinstate the labor service system from the New Policies due to widespread resentment among the people.

A merchant from Taiyuan said, "The labor service system is good, but I've heard that it varies depending on the household's rank, with higher-ranking households paying more for labor services than middle-ranking households."

"It's only right!"

A merchant from Hedong exclaimed, "Looking at His Majesty's policies, his intention is to enrich the nation's treasury and alleviate the burden on the poor. He is truly a benevolent ruler!"

The Shangdang merchant curled his lip and said, "Taxing taxes based on household status is good, but I'm afraid that large families are not included in the upper-class households, which will make us small farmers and merchants pay more taxes."

"With the support of powerful clans and the two taxes on wealth, these wealthy families are unlikely to resort to opportunism!"

The merchants from Hedong, well aware of the intricacies of politics, said, "The Wei family of Hedong is a powerful clan with deep connections in the court. They are already aware of the new tax law. Their members have declared that the Wei family will not pay the clan tax, implying that there are no powerful clans in Hedong!"

“Those who pay the clan tax are considered to be from powerful clans, and those who are from powerful clans are considered to be from the upper class. The tax is related to the examinations and appointment of officials, and powerful clans dare not fail to pay it. Once they pay it, they become upper class.”

The clan tax and property tax were unprecedented in history. Zhang Yu conquered the world with his army, and under his rule, most of the powerful clans of the Eastern Han Dynasty fell into decline. For example, the Yuan family had become an ordinary gentry due to their struggle for hegemony; the Yang family lost their former wealth and status due to the decline of the Han Dynasty.

As a result, the aristocratic class underwent a major reshuffle. The rise of small and medium-sized aristocratic families in Kansai and Yingchuan, and the decline of the old powerful families, rendered the concept of "clan aristocracy" meaningless. Many aristocratic families, especially the newly emerging ones, were eager to obtain the title of "clan aristocracy" and to erect their gates.

The Shangdang merchants' perceptions changed, and they exclaimed, "If the powerful families can pay heavy taxes, how could we, mere merchants, be unwilling to pay our taxes!"

For the Shangdang merchant, his biggest complaint had previously been that the taxes paid by powerful clans were not much different from his own, the only difference being that the powerful clans had more people performing corvée labor. However, the court's series of measures targeting powerful clans had changed his perception of the government. Based on the idea that "it is not scarcity that is a concern, but inequality," his thought was simple: if powerful clans were willing to pay heavy taxes, he was willing to pay taxes honestly.

The three chatted for a while, then each paid for their drinks and left. However, their conversation was overheard by two other people.

"What do you think of the new laws of the court?"

Zhong Changtong took a sip of wine and laughed, "Kongming already has his own understanding, so why ask me?" Zhong Changtong, whose surname was Zhong Chang and courtesy name was Gongli, was a native of Gaoping in Shanyang Commandery. He was studious from a young age, well-versed in books, and skilled in writing. Since China had been relatively stable, he had traveled to various states in the Guandong region for study. Last year, he visited the capital region and became acquainted with Zhuge Liang.

Both men were exceptionally talented, with forthright and unpretentious personalities. Zhong Changtong admired Zhuge Liang's strategies, while Zhuge Liang respected the depth of Zhong Changtong's thinking. Therefore, the two often met to discuss matters, ranging from ancient times to the present, from current affairs to the politics of the court and the state of the world.

Zhuge Liang gently stroked his feather fan and smiled, "Public principles often contain thought-provoking words, so I dare not remain silent!"

Zhong Changtong pondered for a moment and said, "To be honest, the court's establishment of middle and lower-class households is beneficial for both tax collection and reducing the burden on the poor. However, there is only one level of upper-class households, and the court officials should have other plans. Therefore, if the three-class, seven-level household system can be implemented properly, the rich will pay more taxes and the poor will pay less taxes, which is truly a beneficial move for the country."

"In addition to the three-class household system, the imperial court levied a tax on aristocratic families, which is the first time in a century. In the past, aristocratic families were evaluated by the people themselves, but now the imperial court is evaluating them for a fee, which is unprecedented in history."

Zhong Changtong greatly admired: "In the late Former Han Dynasty, powerful clans and wealthy people forcibly seized farmland from the people, and the homeless became slaves of officials and private individuals. Therefore, when Shi Dan was in charge of the government, he and Chancellor Kong Guang submitted a memorial to implement a land-limiting policy, hoping to allow landless people to have surplus land to cultivate. However, Emperor Ai ignored it, which led to the Former Han Dynasty being replaced by Wang Mang, and the Green Forest and Red Eyebrows then wreaked havoc on the world."

"Your Majesty is now implementing a new tax system, levying taxes based on household class, which is intended to rob the rich and help the poor. If this policy can be implemented for a long time, wouldn't it be better than Shi Dan's plan?"

Shi Dan was from Langya. He entered officialdom during the reign of Emperor Yuan. Due to his outstanding talent and learning, he was recommended by the Grand Censor Kong Guang and was promoted to Attendant-in-Ordinary. He then became the Grand Tutor of the Crown Prince, teaching Crown Prince Ai.

After Emperor Ai ascended the throne, the Western Han Dynasty faced a severe problem of displaced people, with a large population enslaved. Therefore, Shi Dan attempted to implement a policy of limiting land ownership and the number of slaves as a temporary measure to alleviate social tensions. However, this policy offended the powerful elites, and ultimately failed.

Although the policy of limiting land and slavery was not implemented in the Western Han Dynasty, it was put into practice in the Western Jin Dynasty. At that time, the Western Jin Dynasty limited land and slaves according to official ranks, but due to the incompetence of the Western Jin government, it ultimately failed to be implemented.

After the fall of the Western Jin Dynasty, its policies and ideas were adopted by the Northern Dynasties, even evolving into the equal-field system. Since the establishment of the Tang Dynasty, Li Shimin learned from the experiences of previous dynasties' demise and implemented policies to limit land ownership and slavery in the Tang Dynasty. However, due to the actual social situation, these policies were eventually abandoned by his successors.

Therefore, strictly speaking, drawing lessons from the fall of the Western Han Dynasty, successive dynasties hoped to alleviate the wealth gap through policies. Zhang Yu's current system of separate taxation for different households is essentially aimed at alleviating this wealth gap.

Zhuge Liang stroked his fan and nodded, saying, "The difference between the rich and the poor is irreversible. Since the rise of the Han Dynasty, the mansions of the wealthy have stretched for hundreds of buildings, their fields are overflowing with fertile land, and they have thousands of slaves and tens of thousands of dependents. Their boats and carts are used for trade, and their abandoned houses and stockpiled wealth fill the capital. Their rare gifts and precious goods cannot be contained in their mansions; their horses, cattle, sheep, and pigs cannot be stored in the mountains and valleys. Therefore, we should govern according to the people's sentiments. If we can make the rich pay more taxes, and the poor pay less or no taxes at all, wouldn't that be acceptable?"

"Shi Dan's land-limiting policy was a good policy, but due to the corruption of officials and the lack of reform from the emperor, it ended without success. The current government's policies are also good, but if we want to extend them to the whole country, it cannot be achieved without the hard work and dedication of county and prefectural officials!"

Zhong Changtong said admiringly, "A nation prospers because of a wise ruler and virtuous ministers, and declines because of a foolish ruler and incompetent ministers. The Han Dynasty rose because of the efforts of wise rulers and virtuous ministers. It perished not because it lost the Mandate of Heaven, but because the ruler and ministers indulged in debauchery and the upper and lower classes were corrupt. Therefore, Zhuge Liang had foresight. A nation prospers when its officials are clean, and it perishes when its officials are corrupt."

The reason why Zhuge Liang and Zhong Changtong could have common topics was that they shared the same political philosophy: they believed that the rise and fall of a nation had nothing to do with destiny, but rather with human actions. A wise ruler and capable ministers in power, with clean governance, would ensure the continuation of the nation's reign; while a foolish ruler and incompetent ministers in power, with corrupt governance, would lead to the nation's demise.

Zhuge Liang smiled and said, "Gongli is exceptionally talented. If he were to be appointed to an official post, he would be suitable to serve as Minister of the Imperial Secretariat!"

"What about Kongming?" Zhong Changtong blinked and asked.

"I should be the prime minister!" Zhuge Liang said confidently.

"Ha ha!"

Zhong Changtong laughed a few times and said, "If it were someone else who said this, I would think they were just arrogant people. But if it is Kongming who said it, I wholeheartedly agree!"

Because of his marriage, Zhuge Liang came to Chang'an from Jingzhou. Since arriving in Chang'an, Zhuge Liang has witnessed the many outstanding talents in China, which greatly amazes him. But despite his amazement, Zhuge Liang remains confident that he can rise to the position of Prime Minister and assist Zhang Yu in creating a prosperous era.

As they drank and enjoyed themselves, Zhong Changtong, slightly tipsy, said, "Kongming is a man of extraordinary talent, but I believe there is someone who can rival you!"

"who?"

"Sima Yi of Wen County in Hedong is a man of great intelligence and strategy, decisive and outstanding. I am acquainted with him. I wonder if Kongming would like to meet him?"

"Introduced by Lao Gongli!"

Zhuge Liang's interest was greatly piqued. (End of Chapter)