NOVEL NEXT Chapter 9: Chapter 9: The Plan
Richard walked up to Arthur and greeted "Your highness I have some questions and concerns about the condition you offer."
"Hello, Duke Richard. I'm glad you came. Please, have a seat," Arthur replied, gesturing calmly to the chair opposite him. A long desk separated them, creating a formal yet intimate atmosphere.
"What are your concerns?" Arthur asked, his tone calm but firm, a reflection of the confidence he had gained.
"First, I would like to understand how Your Highness plans to change the taxation system," Richard said, choosing his words carefully. He recognized that Arthur had changed and is no longer someone who could no longer be easily manipulated as in the past.
"Ahh, I have a taxation plan in mind," Arthur replied, shuffling through the papers he had prepared during his own time and handed the letter to Richard.
In Arthur's memory fragment from the past, the taxation system of Keldoria had been deeply flawed. Regardless of wealth, every citizen was taxed a flat rate of ten silver Keldo coins each month, amounting to one hundred and twenty silver coins annually. In Keldoria, the currency system was tiered, with four types of coins ranging from gold to tin. One gold coin equaled ten silver coins, one hundred copper coins, and one thousand tin coins.
In terms of purchasing power, five tin coins could buy a single loaf of bread, while a kilogram of meat could cost around three silver coins, depending on the type. For the wealthy, ten silver coins a month was a mere trifle, but for the poors, who often struggled to afford even a loaf of bread each day, it felt like a devastating blow, stripping away their meager resources.
Aside from a few toll fees for those traveling between regions, Keldoria's tax system was virtually nonexistent. There were no goods and services taxes, no corporate taxes—nothing to balance the scales. This system favored merchants and the affluent, allowing them to thrive while the common folk barely scraped by.
Arthur's new plan aimed to rectify this imbalance. He envisioned a comprehensive taxation system that included individual income tax, goods and services tax (GST), corporate tax, capital gains tax (CGT), and more.
As Richard perused the details, he was struck by the progressive nature of the individual income tax. The plan featured tax brackets with varying rates, designed to ensure that those who earned less than five gold coins were exempt from taxation. For those earning between six and twenty gold coins, a modest 19% would be taken, while those in the 21 to 55 gold coin range would pay 26%. The wealthiest, earning above 56 gold coins, would contribute 38%.
Richard's heart swelled with admiration as he read through the carefully calculated thresholds. Arthur had crafted a system that considered the financial realities of all citizens, ensuring that the burden of taxation would not crush the struggling poor while still generating substantial revenue for the nation. Richard could hardly believe that the once-inept king had created such a thoughtful and intricate plan—one that even the most brilliant scholars would struggle to conceive -- moreover this plan of Taxation that King Arthur Jr invented could shake the nature of what taxation looks like in Nova continent.
As he continued reading, Richard discovered that Arthur also intended to implement a goods and services tax, corporate tax, and capital gains tax. Each element was meticulously designed to enhance the economic landscape of Keldoria. Richard felt a sense of awe wash over him; he could find no fault in Arthur's vision, only the promise of prosperity for his own Dukedom and Keldoria.
Finally, unable to contain his admiration, Richard turned to Arthur, his voice filled with wonder. "Your Highness, did you truly come up with these ideas? Even the greatest scholars would be hard-pressed to think of such things!"
Arthur chuckled softly to himself, thinking, he has lived in that economy for over twenty-five years and only three days in this world. However, he maintained his authoritative demeanor and replied "Do I need to explain everything a king does to a Duke?"
Richard felt a wave of humility wash over him, realizing he had overstepped. He quickly apologized for prying and shifted the conversation to the shares and tariff rates mentioned in the conditions.
Arthur suddenly remembered that the concept of buying and selling shares was non-existent in this world, where businesses were typically owned by a single individual or a family partnership. He had assumed everyone understood the idea of shares, so he hadn't prepared a detailed written format for Richard to read.
Thus Arthur explains what he knows not in detail but simple terms, "If someone starts a business but lacks sufficient funds, they can seek investment from family or strangers. In return, those investors receive a percentage of the business as shares. There are different types of shares: equity shares, which grant voting rights; preference shares, which prioritize dividends but lack voting rights; and dividend shares, which focus on regular payouts rather than capital appreciation. Hence, benefiting both party"
As Arthur elaborated, Richard felt a sense of wonder and confusion. This was knowledge he had never encountered before. The more Arthur explained, the more Richard realized how limited his understanding had been. He felt a pang of inferiority, as if he were a mere insect compared to the towering intellect of the king before him.