Chapter 13: Financial Reforms: Tax Reforms
The Kingdom of Aucrulethen had a centralized organizational structure. The bureaucracy from the old king reign was still more or less intact, so there was plenty of surviving administrative data.
Desmend spent three months of his life examining fifty years' worth of administrative records and documents. He went through a hundred years' worth of data with a five-year interval and produced a statistical graph. He compared the fluctuations on the chart with periods of famine, wars, declaration of new laws and Ecumenical Councils. Finally, he came to a conclusion.
"Leaving a bunch of dwarves in charge of the kingdom taxes was a stupid idea."
Ahead of time, he called all of the kingdom's bureaucrats to the hall of GEO. It was sort of like the world trade centre back on earth. A World Trade Center brings together businesses involved in international trade from around the globe. Which also provides the taxes for the kingdom as well. Makes sense... Aurarock is a technological city for a medieval-like world.
The bureaucrats had expressions full of anxiety, wondering why the new emperor had summoned them except for the bureaucrats from the Royal capital where they had worked with Desmend before. Nevertheless, they calmly drink coffee with milk, making the new drink more taster than ever before.
Desmend inquired a bureaucrat with an even calmer face.
"Knoxx Anderfall."
"Y-Yes!!"
The novice bureaucrat belonging to the dwarven race felt his heart jumping out of his skin.
Unsurprisingly.
The King of Aucrulethen, said to be Goddess's proxy on the mortal plane, had directly called out to him. The fact that he memorized Knoxx name also made him incredibly nervous.
"Why would the king ever bother learning the name of a rookie bureaucrat like me!!" Knoxx's mind was in disarray.
"Describe our kingdom's tax system."
"Y-Yes!"
The Aucrulethen tax system consisted of seven main kinds of taxes:
Land and Property tax- you pay for the land you own, the buildings you own etc.
Head tax - levied as a fixed sum on every liable individual, without reference to income or resources.
Commercial tax- a tax that is levied on locally manufactured and imported goods and services and contributes to the country's GDP.
Import tax- a tax collected on imports and some exports by a country's customs authorities
Tariffs- When you enter a city with wares, you have to pay a tax to enter. This allows cities to profit from merchants and will enable guides to make deals with cities, perhaps.
War tax- A tax billed by the military.
Slave emancipation tax- A tax that is levied on how many slaves you own each month.
In addition, the people in this room held a salt monopoly.
"I see. Thank you, Knoxx."
Then Desmend declared as he put a hand to head. The injury from Eliza is fresh, and said person who is wearing a very lacy, frilly combat uniform is smiling ear to ear at her handiwork.
"Head tax, commercial tax, import tax, slave emancipation tax and the salt monopoly are to be abolished or revised." Desmend stated blase.
"Eh?" The bureaucrats' expressions froze. What Desmend said was so abrupt that they couldn't follow at all. But one by one, they began to understand the meaning behind his words.
He wants to make radical changes to the tax system!!
Changes are scary. Changes can make things grow even worse. Right now, they could still manage; they would rather not make changes.
Many of them started having these kinds of thoughts and felt alarmed by these reforms. Yet Desmend didn't have even a shred of anxiety.
Why do you ask?
For the sake of that "anything", the risk of driving the country to the ground was a trivial matter!!
That lottery ticket can be refunded if he is an old man by then. So he will do whatever it takes! Even Scarface stuff...
That was a joke, of course. (Maybe 10% of that was serious…)
Desmend had confidence in himself. He firmly believed that anything he did was absolutely correct.
The judge, teachers, and his old crew always said he has ways to make money.
"Y-Your Majesty! That would be…."
"Be quiet for a second! I'm going to explain my genius—your welcome, by the way. You can protest after hearing what I have to say. Though I doubt it would work. Harry, drop the ball."
The giddy knight took out a sheet of administrative data and dropped it on the table.
"Knoxx, since I like you so much, take a look at this and tell me what you think. Start with the head tax." Desmend said while taking a sip of water. He never quite liked coffee.
"U-Um…"
The novice bureaucrat whom the Chosen One was oddly pleased with conveyed his thoughts.
"T-There are only women… I think."
"Exactly! Moreover, there are way too many handicapped people!!" Desmend bangs his fist on the table. Since he is the ruler of this place, that means people are cheating him out of money.
NO ONE CHEATS DESMEND OUT OF MONEY!!
The Kingdom of Aucrulethen's head tax was higher for men than women. And for people with physical disabilities… limb loss, or visual or hearing impairments, for example, their tax burden would be even lower.
In the beginning, even peasants did their tax reports seriously. But at some point, the peasants, serfs and low-income people noticed something.
Nobody would notice even if they lied.
Visual and hearing impairments were self-declared. As a result, officials had no way to confirm but to rely on the person's own words. Also, with a report like "My family had one man and one woman (actually six men and eight women!)," it was far too time-consuming to enter their house to verify the report's content or to check if someone was cross-dressing.
The kingdom had a population of over 10 million people. In the first place, the reported population might be inaccurate. Some people could have counted wrong on purpose, many peasants could have under-reported, and no one would be none the wiser.
With each person evading tax, it gradually developed into a colossal problem…
What do you think would happen when dust builds up?
Of course, it was connected to the decline in tax revenue for the Kingdom.
No matter which world you are in, people still won't ever pay their taxes. Desmend even paid his taxes, and he wanted in over 30 states for fraud!
"Are you all this dumb! What if this information turns out to be true? That's a lot of gold missing!"
The bureaucrats could say nothing in return. It was clear that the civil registers were full of errors.
"A tax system that cannot collect taxes may as well not exist. Therefore, I want this tax abolished."
After taking a sip of water, the Chosen One turned his eyes towards Knoxx once again. Knoxx stiffened.
"Now, dwarf. How is the commercial tax collected?"
"Well… A merchant's tax rate is calculated from his revenue and the type of commodities…."
"How do you find out his sales revenue?"
"…From his self-assessment, Your Majesty," Knoxx said, slowly seeing the point that the king was making.
"That face just screams to me you find what the merchants are doing. So basically, merchants were free to fudge the numbers. And LIE!" Desmend yelled at the group." They can hide their actual sales with bs like 'my business makes nothing' or 'bandits ambushed me and stole my cargo' without paying their taxes. A tax indeed levied on trade will generate significant income. I intend to keep a business tax policy, but the way you morons have gone about it requires too much work. I'm going to revise it."
If he had government officials do a surprise inspection, he could probably crackdown on tax evasion to some extent. But that would take far too much work, time and manpower.
Maybe income tax evasion could be minimized if he had a giant bureaucracy on par with Sweden, but that was impossible for the current bureaucracy right now.
"Next is the import tax; this one only obstructs the flow of goods while returning a minuscule income. It also creates an opportunity for crooked officials to line their pockets. Abolished."
After quickly eliminating the import tax, Desmend got up and circled the bureaucrats at a slow pace. "Next is the slave emancipation tax… I shouldn't need to say anything about this one. It's actually singular how this antiquated tax still exists. Unlike the old times when kings of the old had to tax the release of slaves to gain support for the government, nowadays, slaves are basically never freed anymore. Abolished. Though I do agree that we need a tax on slaves."
Desmend actually despises the idea of slavery and will show contempt towards anyone who supports slavery. But for now, it's logically the best way to make money or have an army.
The four lords aren't going to wait forever.
"The last is the salt monopoly. The state sells salt at a monopoly price of 30 times the regular price. Yet, salt is a necessity, so the people will have to buy it no matter the cost! But, goodness gracious isn't this just genius…? Seriously, would anyone actually buy the monopolized salt? Rather than the salt monopolized by the state, would people not prefer to buy the much cheaper, higher quality illegal salt circulating in the black market right now?"
The bureaucrats averted their eyes simultaneously. They actually were also purchasing illegal salt themselves. Aucrulethen bureaucrats earned meagre wages; they weren't so well off that they could buy the state-produced salt.
Then Desmend asked the bureaucrats another question.
"Gentlemen. Can any of you confidently say there has been a mistake in my conjecture so far? Rest assured, I swear to God that I shall not punish you."
Harry and Eliza put their hands on weapons as Knoxx is internally panicking. The pressure in the room was heavy.
The hall was perfectly silent. Not a single person could object to the Chosen One.
But then, Knoxx raised his hand and asked a question."
"Will all due respect… Regarding the abolition of import tax, will customs be dissolved as well? I'm afraid abolishing customs would be harmful to national security…."
"Of course not. Rest assured, I have no intention of abolishing customs."
Desmend grinned, and the aura dropped. Looking at Desmend's smile, the bureaucrats' nervousness dissipated somewhat. They began to raise their hands sporadically.
"With all due respect…."
"I-I have a question…."
"I'm a little uncertain about something…."
The Chosen One scrupulously answered the bureaucrats' questions, one by one. Finally, after about an hour, all the bureaucrats had consented to Desmend's assertions.
"Gentlemen. Accordingly, I have devised a new tax plan. Do not hesitate to object. Let us save our kingdom by implementing a brand new tax system."
Then Harry handed out parchments containing Desmend's new tax plan as he said in conclusion.
"Right, it seems your salaries are a little too low. If the financial reforms are a success, I will give you all an appropriate raise before all else… Let's all do our best."
Seeing Desmend's wide grin, the bureaucrats' eyes gleamed with excitement.
Afterwards, Desmend and the bureaucrats exchanged heated discussions for three days and nights. Then, finally, the finished tax plan was ready to be announced throughout the Kingdom…
It would be many months before the Kingdom could see the results of Desmend changes.
It is said that for tortured souls, death is a mercy. It makes injuries and disease meaningless. It renders memories of suffering obsolete. It frees individuals from guilt, loss, and sorrow. For those with no way out, it is the only way.
Yet it is mercy Desmend wouldn't receive just yet.
"What do you mean the quarry is closed?" Desmend roared at the drunk dwarf. Much to Eliza shock Desmend and her grandfather get along well...
How can they not? Both love money and drinking and making people who cheat them out of their hand earned money sweat like pigs! One of the three dukes down! Just two more to go.
A reason Desmend is angry is that he just now noticed that his mineral gathering is way shorter than it is supposed to be along with lumber and food.
Monthly Trade Income: $2,200,000 💵
Monthly Tax Income: $216,000 💵
Daily Food Consumption: 11 Core 😋
Grain Yield: 25,000 due in 17 days 🌾
Vegetable Yield: 35,500 Food Units due in 21 days 🥔🥕
Meat Yield: 11,500 Units Daily🍖🍗🥩
Dairy Yield: 11,000 Unit Daily 🧈
Quarry Yield: 200 Blocks Daily 🧱
Iron Yield: 200 Blocks Daily iron
Timber Yield: 17 planks daily 🪓
Smithy Yield: no production set
Weaving yield: 4 bolts daily
A quarry is a type of open-pit mine in which dimension stone, rock, construction aggregate, riprap, sand, gravel, or slate is excavated from the ground. The fact they don't call it stone quarry means they must have advanced mining operations, right?
But his daily productions is way below the standard of feeding ten million people. Desmend took a minor in civil engineering.
Civil engineering is a professional engineering discipline that deals with the design, construction, and maintenance of the physical and naturally built environment, including public works such as roads, bridges, canals, dams, airports, sewage systems, pipelines, structural components of buildings, and railways.
So he knows that his material gathering is way too low for his projects. He doesn't have to worry about money right now.
Ruldraic Wraitharm happily keeps on drinking. His bread was long and flowing; the strong fingers holding the mug he was drinking would cause lesser men alcohol poisoning by looking at it. Then the man began to whistle.
It began low and fast and then ascended into soft, higher-pitched tones, a soothing melody that calmed as it fell on the ears. It wasn't clear why the song affected him the way it did, but he could recognize the energy and magic in the music, just as he recognized the quiet power in the music of his own people.
But he wasn't a dwarf? Those sexy legs of his are way too hall for to be that short.
Desmend wisely moved three feet back away from Eliza, who seemed to have the power to read his mind as all women do.
As soon as the song ended, a new blue message appeared:
King Quest I
Welcome to thuh your super first kin' quest Kin' Quest are only offered to thuh rulers of thuh kingdom. Succeed, mostly and your kingdom, country or like whatever, will provide like massive bonus.
Its totes sweet.
Olaf, mostly thuh barbarian, mostly has sealed thuh Major Quarry One of thuh four lords. Thuh guys who mine these rocks are in stasis, like, wow but not for long your must hurry and save thuh 'Granoks' and have access to superior quality stones and tech like stuff to improve your kingdom.
Isn't like, ya know, this fun!❤❤❤!!!
Thuh goal of like, ya know, this epic quest is to kill thuh fugly lizard thingy.
You'll go through ten stages, like, and you can clear each stage by killin' thuh final boss. You can die once in each stage, oh, baby, and you'll be revived a few moments later with a perfectly healthy bod. If you die again, like, wow, you'll be expelled from thuh dungeon and be like the dead for realz. Killin' a stage's final boss without dyin' gives you extra rewards.
I'm a like a bitchin' goddess, like so you get rewards for killin' YAY! So gag me with a fro-yo! Each stage has a middle boss and a final boss.
You'll get more information on each of them when thuh time to fight them arrives. Fight well
BTW: Your crazy cutie! Oh, wow! You a week before you forcibly teleported to thuh dungeon!
After reading all that and the grammar mistakes, Desmend quickly decided to do something.
Who the hell says Gag me with a spoon? "Did you... just give me a request from a song?! Without explaining anything to me?!"
Desmend explained to people in the room about the quest. The room fell silent while Desmend was on the ground complaining that life is unfair, and the goddess is now a Vally Internet Troll.
Then the sudden pressure against his nose and mouth was the first thing to register. The sharp scent of something metallic- blood? Hit his nose. The air fled his lungs like a punch. A light flashed- who-?
He made a sound, something surprised and maybe more vulnerable. It was then that he heard the click, a tiny cnkk of finality. His voice was the next thing to flee into a groan he was helpless to stop. His fingers scrabbled ineffectually at the band of metal pressing into his skin like a manacle.
When he was finally able to look up, he was shocked to see Eliza, and not… not-
"What is this?" He rasped, but it felt like the words were being sucked off his lips, stolen like every breath he tried to take. He tried to maintain his normal breathing, but it felt unnatural and stiff once he started focusing on it. Deep breaths. Deep breaths. Not deep enough!
"I'm going to enjoy... this far more ....than I should!" Eliza said with a happy grin. "Chosen One. From this moment forward, you will be wearing that breathing correction apparatus... until I say otherwise," Eliza intoned, from her place above him, with that same grin on her beautiful face.
"I..." he gasped. He clawed the device, gulping and unable to keep his voice even. "...Can't breath!" he pleaded. His mind scrambled worse than eggs. What was the right way? How was he supposed to be breathing? Heat flared in his chest; he still couldn't catch his breath! His heart burned, ramming itself against his sternum. His bones were suddenly, impossibly light, on the verge of letting him float away. Somehow, his knees still went weak.
"Not without proper rhythm, you can't. However, with proper breath control, you will have no problem. Suppose you do not maintain proper breath control, then, yes. In that case, the mask will eventually suffocate you-" The small amount of air Desmend was able to catch abruptly left in a whoosh, the second wave of panic dripping ice into his fingertips and toes. "-So focus. Learn to master your breath, and you'll be running marathons while wearing it."
"Are you crazy?" He panted. Think, Dylan, c'mon! He thought maybe the right pattern would be simple- inhale for three seconds and exhale for three. But he still couldn't! Finally, he had just enough air to rasp out an angry but deeply terrified, "Get this... Damn thing... off my… handsome face!"
Maybe pissing off his future teacher wasn't the best idea in the world.
"Since we only have a week... Your training... starts now," Eliza's voice was calm, but her eyes weighed his every movement, judging how he was already failing. The quirk of her lips suggested she was amused at his situation.
"The mask will feed you, so you don't need to take it off." He wanted to ask if he would ever have a chance to rest, but every vein in his body was screaming for oxygen. But he still didn't know the correct pattern! How was he supposed to be doing this?! He tried to match the pattern of her chest rising and falling, but his vision blurred obscenely.
Maybe pissing off his future teacher wasn't the best idea in the world.