The magical effect of business tax

As an ambitious ruler, Li Shimin truly inherited and carried forward the excellent traditions of Li Yuan's reign.

The most important of these was an extremely simple tax system.

Apart from the land tax, there were basically no other taxes, and during the Sui Dynasty and early Tang Dynasty, it was the only period in Chinese history that did not monopolize salt and iron sales or levy miscellaneous taxes on commerce and industry.

This was not only a policy of lightening the burden of taxation and nurturing the people, but also a great display of confidence.

In the following dynasties, why did they monopolize salt and iron?

On the one hand, the national treasury needed to make money, and on the other hand, it was to control the manufacture and circulation of weapons.

However, at this time, both Li Yuan, the founding emperor, and Li Shimin had an extreme level of trust in their own abilities and the military might of the Tang Dynasty.

They believed that salt and iron were daily necessities of the people and should be for their convenience, which is why the family of Changsun Wuji became the largest iron trader in Chang'an City.

At this point, Zhang Nuo also became enthusiastic, standing up with his hands behind his back and saying,

"Li, you and I are both businessmen. What we earn in a day may be a year's income for a farmer."

"But in reality, what we need to pay to the government is only two stones of millet, sixty feet of silk, and a little bit of food, which adds up to less than half a coins!"

"Why does the government look down upon businessmen? Isn't it because they don't engage in production but can live a life of luxury while farmers work hard and only get rough meals?"

"So, imposing business taxes on merchants is the best way to solve the problem of the empty treasury!"

Li Shimin frowned and pondered over what Zhang Nuo had said, and he agreed with it in his heart, after all, he knew that businessmen were richer than farmers at this time.

He wasn't feeling sorry for the merchants for the small amount of money they would have to pay, but was considering whether this would lead to a chain reaction.

"Brother, if we impose business taxes, it may not have much impact on our large enterprise, we can just pay a little more each year. But in the end, won't the farmers suffer?

"After all, what they earn from their hard work is generally sold to merchants!"

Zhang Nuo looked at Li Shimin strangely, as if he had just met him for the first time.

"Well, Li, I didn't expect you to be a patriot who cares about the people. I thought you would jump for joy at the idea of imposing business taxes!"

"But you've also got it wrong. As long as there are more and more workshops like ours in the country, farmers will only benefit and not suffer!"

Zhang Nuo smiled as he picked up a glass of wine, downed it in one gulp, and continued,

"Let's take our liquor workshop as an example. We need a lot of grains, so if there's a shortage of grains on the market, wouldn't we have to raise the purchase price? And wouldn't the farmers make more money every year if we did?"

"After all, there's only so much grain on the market, and we and other grain merchants all want it, so it comes down to who's willing to pay the higher price!"

"At the same time, because we're a workshop, we need a lot of manpower for both brewing and selling, so as long as the farmers are diligent, couldn't they earn some extra income during their free time?"

"The clever use of commercial taxes lies in this. If the government collects my taxes, they naturally have to ensure that my business operates smoothly. Then I can hire a lot of people and produce on a large scale. If they don't collect taxes from me, I'll be worried that the government will monopolize the liquor industry one day!"

Li Shimin nodded in agreement. Indeed, many dynasties had monopolized salt, iron, and liquor.

"Xiao Zhang, do you think the court might be envious of our liquor profits and take over the industry?"

Zhang Nuo shook his head and said decisively,

"I don't know about other emperors, but our current emperor will definitely keep his word. If he says he won't take it over, he won't. Besides, encouraging private sales of liquor and only collecting commercial taxes is actually more advantageous for the government. Why should they monopolize it?"

"You're not a court official or the current emperor, so you can only see our own business. But if you were the current emperor, looking at the whole country and ruling over the people, it would be different."

At this moment, Li Shimin really wanted to slam the table and shout that he was the emperor.

But he thought better of it. He still relied on working with Zhang Nuo to make money, eat delicious food, and drink fine wine in the future. How could he show his hand now? He had to endure it.

So Li Shimin smiled and approached Zhang Nuo, saying,

"Brother, you know I'm just a businessman. My vision naturally can't compare to yours, but could you share some insights with me so that I can catch up with your steps?"

Zhang Nuo looked pleased as he nodded. Li had made progress. He could not only see the advantages of me , but also work hard to learn and improve. It seemed that he needed to give Li more lessons. He didn't expect him to be as outstanding as himself, but he could still learn something.

Empress Chang sun also smiled as she watched all this. She didn't care about the intimacy between the two men; she cared that the emperor seemed particularly relaxed at the moment, even more so than in the Lijing Palace where she lived.

Hongyu, on the other hand, was stunned as she watched the two men. Zhang Nuo didn't know, but she did. The man who was pouring wine in front of Zhang Nuo, trying to please him, was not just a small merchant from Chang'an. He was the ruler of the world, the Son of Heaven, and the Supreme Emperor.

Her future husband was playing around with the emperor. Not only was the emperor not angry, he even seemed very happy?

Hongyu knew that since she agreed to come and see Zhang Nuo, she had been selected as his wife.

How could anyone go against the emperor's words?

If a person can be brought to the door by the emperor and empress to be a matchmaker, they are already fortunate. Unless there is a big problem, this matter is set in stone and cannot be easily rejected.

However, at present, it seems that this prospective husband, apart from his ability to judge people being somewhat questionable, is an excellent match in all other aspects.

Perhaps she should thank His Majesty and the Empress for arranging such a good marriage for her?

Zhang Nuo's argument was persuasive enough,

"In the eyes of His Majesty and the court officials, it is not just about gaining or losing one city or territory."

"Although the liquor monopoly seems to earn money for the court, in reality, because there is no competition, the business has become complacent, and the quality of the liquor has deteriorated over time."

"Although ordinary people have no other choice but to buy, they will eventually start making their own liquor or stop drinking altogether."

"However, if everyone is allowed to operate, and if you have a better quality wine than I do, then I must develop my own unique product."

"As a result, there will be more types of liquor with better quality, which will require more grains and labor, and the government can earn more taxes. Isn't this better than simply selling our own liquor?"

Zhang Nuo looked at Li triumphantly, as he stared at her in amazement. It seemed like she had just made a perfect argument.