Chapter 74 War Taxes
With enough troops, is there any other option than to expand the army? If you want to expand the army, you will naturally have money.
The finances of the Republic of Hungary, from the very beginning of its establishment, were teetering on the verge of bankruptcy.
The nascent government didn't know how to manage its finances at all, and the taxes it had managed to collect were spent in a daze before they could be covered in their hands.
Kossuth was directly responsible for this, so to speak, and the nascent Hungarian republican government, so to speak, had surpassed Austria in terms of corruption.
This question can be referred to the government of the Republic of China after the Xinghai Revolution, when the old order collapsed and the new order was not established, after the lack of constraints, the high-ranking officials became more unscrupulous.
"Mr. Kossuth, the government has already collected war taxes twice this year!" Marquis Loch reminded
Taxes in Hungary have always been independent of the shadows, and during the period when the decaying aristocracy controlled the government, there were often chaotic taxes, and the people lived a miserable life.
I thought that after independence, everyone would be able to live a good life, but the reality is the opposite, without the "Austrian exploitation", their lives are even more miserable.
The new republican government gave greater power to the localities, and it seemed to them that as long as it was an elected government, it was an honest and honest saint.
The truth is always different from the ideal, and now Hungary has learned from the Americans, not only the central government has the right to collect taxes, but local governments can also collect taxes.
To put it simply, the number of tax collectors has increased, and there are no constraints, officials have taken advantage of the opportunity to make money, and even some community governments have instituted a whole bunch of chaotic taxes.
Of course, the aristocrats do not need to pay these messy taxes, nor do the capitalists, and it is the ordinary people who really pay for them.
However, the war tax was an exception, and the nobles and capitalists had to pay it together, even if they paid it, but the problem was that they still collected it so diligently, which was difficult for everyone to accept.
How long has the Republic of Hungary been founded? Even if you include the preparation time in the early stage, why is it less than three months?
In such a short period of time, two war taxes have been levied, and now there is a third war tax, and before the enemy has yet to fight, it will be "expensive" and unbearable.
Unlike capitalists, capitalists can find ways to evade taxes, and the main industry of the aristocracy is land, which cannot be hidden at all on the surface, and it is not easy to evade taxes.
"Yes, Your Excellency Marquis!"
"But the situation is not up to anyone, and according to the information we have gathered, Austria is now able to commit 400,000 troops to war with us, while the National Guard is less than 300,000.
What's more, they are all well-trained regular troops, and our army is only a worker who has just laid down a hammer, or a farmer who has thrown away a hoe, relying only on full blood.
The gap between the two sides is simply too great, and without the same number of troops, we simply have no chance of winning this war! Kossuth argued
Well, the situation with the Hungarian National Guard, in fact, is even worse than he says, because ordinary soldiers are not full of blood at all.
There are not even 300,000 people, and the National Guard is just a grass platform team, and the jurisdiction over the lower levels is not strict, and the last remaining money under the layers of deductions cannot afford to support so many people.
But it doesn't matter, there are policies and countermeasures, and the capitalists are the most experienced in this regard, and the officers who were born in the bourgeoisie under the influence of hearing and seeing quickly thought of Li Daitao's strategy.
In addition to recruiting some people to support the façade, the rest are all empty, and if they are checked above, they will temporarily pull people to fill the number. Anyway, the top and bottom have taken the benefits, and no one dares to pierce this layer of window paper.
Of all the Hungarian armies, the only ones that were fighting were actually the student army, and they were the real revolutionaries who fought for national independence. The rest, including Kossuth, were no longer mere revolutionaries.
"Mr. Kossuth, I think it is necessary for the government to make public its expenditures, for it has only been since the republican government was established, and you have spent a year of the normal Hungarian government's expenses!
If the republican government has been spending so much all along, then perhaps you don't need to wait for the Austrians to do it, and you will play the new government to death first! Duke Leopold warned solemnly
It was an embarrassing question, Kossuth's face was gloomy and terrible, and everyone knew that the new government was overhead, and that he had used war as an excuse in the past.
But the war has not yet started, and now the expenses are so large, if it does, what will they do?
International loans? Don't dream, no consortium dares to lend them money, which means that there is no repayment, and Austria is also one of the great powers, and will not recognize the treaties signed by these rebellious parties.
Other than that, there is only a tax increase. This is also not a good solution, it cannot solve the internal problems, and no amount of money can fill this bottomless pit.
"Yes, the government can make public spending for everyone to oversee. But now that we're in financial trouble, we need some money to get through the crisis.
This time, the government will not take this money in vain, we will issue bonds in the mode of letting everyone subscribe, with an annual interest rate of seven cents, and tentatively issue Rp 200 million. (Contains 11.69 g of silver)
If the debt can't be sold, then we'll just have to collect another war tax. ”
Kossuth still chose to compromise, and now he still needs the support of these people, without the cooperation of the nobles, it is completely nonsense to want to collect taxes, and appropriate concessions for this are also feasible.
Seeing that the representatives of the nobility present had a very tough attitude, even the war tax was temporarily changed into a war debt by him, and he would rather bear a high amount of interest, and Kossu was unwilling to stimulate everyone's sensitive nerves.
The Republic of Hungary represented the interests of the emerging bourgeoisie from the very beginning of its establishment, and as soon as it became independent, it introduced a series of decrees conducive to the economic development of the bourgeoisie, including the abolition of a series of exorbitant taxes that hindered economic development.
These reforms have enabled the government to gain the support of the capitalists, and at the same time greatly increased the financial pressure on the government, since the bourgeois economy cannot develop overnight.
The Kossuth government had no experience in government, and it was suggested that the government should issue Hungary's own currency, and after tasting the sweetness of issuing a currency, the republican government, which had no money, began to print money in an attempt to get out of the financial crisis.
Reality taught Kosuth a hard lesson, he did not have enough reserves in his hands, and he only relied on the credibility of the government to issue currency, which naturally turned into gorgeous waste paper.
After the failure of the issuance of the currency, the fiscal crisis of the Republic of Hungary erupted, and from then on embarked on the road of no return to raising taxes.