Chapter 65. Marcus’s Reforms (3)
Chapter 65. Marcus’s Reforms (3)
“The first step is to reform the tax system,” Marcus announced.
The senators, who had been listening attentively, suddenly reacted with shock.
“Tax reform?!”
“That’s too sensitive a topic, even for you!”
“I understand. That’s why I propose we start with a one-year pilot project. First, we need to eliminate the special taxes imposed on provincials and strictly enforce the legal tax rates. We should also lower excessively high tax rates to reduce citizen resistance. Additionally, we need to revise the law to address abuses by tax collectors at the governor's level. In other words, we should focus on transparency and proper administration rather than simply increasing tax revenues.”
The root cause of tax evasion was often resistance to taxes. High rates and an opaque system only exacerbated this resistance. However, some senior senators, particularly those who had been governors, reacted with disapproval.
“I understand your intention, but things don’t always go as planned. That’s a common mistake made by the young. While a fair and transparent system is ideal, securing revenue is more critical.”
“I agree that securing stable revenue is essential, which is why I’m proposing these changes.”
Lucullus raised an eyebrow and challenged Marcus.
“Are you suggesting that we’ll collect more taxes by lowering the rates? Even though you propose lowering them?”
“Absolutely. The current provincial tax rates aren’t high, but when special taxes are added, the burden increases. Additionally, due to tax collector abuses, the actual tax rates often exceed legal limits, leading to significant tax evasion. As a result, we aren’t collecting as much as we should.”
Marcus handed Lucullus a detailed report on the tax situation. As Lucullus and the other veterans reviewed the report, they noticed that Marcus’s assertions were accurate—many regions paid less than they should have.
“Indeed.”
“Yes, and that’s why we need to improve the system to minimize taxpayer resistance. Increased revenue will also make it easier to implement policies to support self-employed farmers, who are crucial to Rome’s economy.”
“But this assumes that revenue will increase. What if it decreases next year? How will you handle that? Even if we revert to the previous system, who will cover the cost and losses incurred during the transition?”
“I will compensate for it.”
The square fell silent, stunned by Marcus’s assertion.
Lucullus, taken aback, stammered, “You… you’ll compensate? How?”
“If revenue decreases compared to this year, I will personally cover twice the shortfall from the treasury. I believe this would adequately compensate for any loss.”
“Heh… Are you so confident about that?”
Lucullus glanced at Crassus, who stood behind Marcus. Crassus's expression remained unchanged, giving no indication of their prior discussion.
The veterans fell silent, seemingly resigned. Marcus's promise to cover any potential shortfall with his own money left them with little room to argue. With Crassus’s vast wealth, he could easily absorb any revenue shortfall, and if revenues increased, they could continue the new system. If not, they could revert to the old system.
There was no downside for the Senate; if taxes were reduced and revenue increased, it would benefit both the citizens and the goals of the Senate.
Marcus was confident that revenue would rise. His policy was inspired by successful reforms implemented by Caesar and Augustus, and he had adjusted some details to make it more effective. Given his knowledge of future outcomes, it wasn’t difficult for him to present these reforms as viable.
He also proposed additional policies: a transfer loan allowing those with high-interest debts to switch to lower rates, long-term low-interest loans for commoners, and state intervention to create simple jobs for the unemployed. These measures were based on modern practices adapted for Rome and would lay the groundwork for a modern banking system.
Marcus aimed to align public and personal interests, using this opportunity to address Rome’s problems while advancing his own goals by establishing a bank.
“The core of finance is stability and reliability. Without a credible institution, the system will inevitably fail,” Marcus explained.
“This bank will do more than just deposit and lend money. It will move away from an individual-centered financial system, offering new capabilities. For example, it will dramatically improve the recovery rate of loans, which was a concern for legal officer Aloysius.”
“How so? Creating a bank won’t suddenly make debtors more capable of repaying their debts.”
“Precisely. We will be able to better assess which debtors have the ability to repay. Our professional staff will continuously evaluate the creditworthiness of borrowers. This will allow us to objectively determine repayment ability. Consequently, reliable customers will be happy to borrow at lower interest rates, and lenders will be more likely to recover their principal safely.”
“So, by more accurately assessing recovery possibilities, we can reduce risk and avoid setting excessively high interest rates.”
Marcus paused, choosing not to delve deeper into the intricacies of the bank’s operations. It was sufficient for the Senate to have a basic understanding.
He began a solemn address to shift focus and prevent further questions.
“Honorable senators and citizens, Rome has been founded for nearly 700 years and has enjoyed the benefits of republicanism for 450 of those years. Throughout this time, we’ve witnessed the rise and fall of many great powers. The Macedonian Empire, once ruled by Alexander the Great, was divided into four.
Of those four, only the Ptolemaic dynasty of Egypt remains as a country. Egypt, once a dominant power, is now a relic of the past. Is there anyone here who doesn’t remember the grandeur of ancient Egypt?”
Most senators responded with knowing smirks at Marcus’s rhetorical question.
There was no one in the Senate or among the knights who was uneducated enough to be unaware of these historical facts.
“Egypt was once said to be a land where gods walked among men. But look at it now. It has become so weakened that it can’t effectively defend itself without our help. Though Egypt still exists as a nation, think of Epirus and Carthage!”
The citizens’ faces hardened as they remembered Pyrrhus and Hannibal, who had inflicted severe wounds on Rome.
Marcus continued his speech with satisfaction, having achieved the desired reaction.
“Rome has not forgotten those past nightmares. But where are those once-powerful nations now? They were utterly destroyed, leaving no trace behind.
The once-mighty enemies we feared are now only memories. Why do so many great powers throughout history fall and decline?
Is it simply due to the natural ebb and flow of history? No! They fell because they failed to adapt to changing times.
But Rome is different. We embraced and integrated every superior technology and civilization that we encountered, turning them to our advantage.
This adaptability has made Rome a great power that conquered the world. It is a testament to our wise ancestors and our loyal citizens who have built this great nation! I extend my deep respect and gratitude to all of you for creating this remarkable empire.”
Marcus paused and bowed respectfully to the senators and citizens.
Pride shone in everyone’s faces as they reflected on their achievements.
The crowd’s focus shifted eagerly to Marcus’s next words.
“But Rome’s system is not perfect. No system in the world is. Our ancestors understood this well and adapted our laws and systems as times changed.
During the war with Carthage, they introduced a war tax and had the nobles lead the way in paying it. When the traditional citizen army proved insufficient, they formed legions and successfully repelled the Germanic threat.
Our ancestors faced crises by abandoning outdated systems and adopting new methods. Now, we are faced with a similar choice, one that will honor the legacy of our ancestors.
To preserve Rome’s greatness and avoid being remembered as a fallen power, we must make the best decision for the future of the republic.”
Marcus’s impassioned appeal stirred a sense of patriotism in everyone.
“Preserving Rome’s greatness” resonated deeply with the senators, who felt proud of the Senate’s leadership. Marcus also acknowledged the contributions of the citizens, effectively winning support from both classes.
The applause and cheers from the crowd lasted several minutes. Some elders approached the podium to commend Marcus for his composure and express their gratitude.
The senators, unaware of Marcus’s deeper motives, soon gathered for a meeting. Meanwhile, the tribunes worked hard to calm the citizens who were fervently calling for the immediate enactment of the reform bill.
Remarkably, it didn’t take long to reach a decision. Consul Silanus stepped up to the podium, raised Marcus’s hand, and declared:
“Given the overwhelming support of the citizens, we will implement the reform bill as soon as possible!”
“Wow!”
“Long live the Senate! Long live Silanus!”
The citizens stomped their feet and cheered, astonished at how quickly the conservative and frugal Senate had acted.
Silanus proclaimed that the Senate was always on the side of the citizens and promised to prove it through their actions in the future.
Some citizens who had previously harbored resentment toward the Senate momentarily felt a sense of shame.
The Senate had long viewed the citizens as a nuisance and had prioritized their own power. Yet, the citizens began to accept that the execution of Catiline was an unavoidable necessity.
This swift acceptance of the reform bill was part of a calculated plan.
The timing was crucial for several reasons. First, there was a strong social consensus, and second, the improved financial situation. But the most critical factor was the third reason.
The day before the assembly, Cicero and Crassus, acting on Marcus’s request, heightened the sense of urgency among the senators.
They faced a pressing issue: Pompey, having completed the reorganization of his province, was preparing to return.
“If Pompey comes back, we’ll face a choice,” Cicero warned. “Either we submit to the renowned war hero and let him lead the political scene, or we challenge his dominance. We don’t have much time to decide.”
Despite his personal ties to Pompey, Cicero recognized that maintaining the order of the republic was paramount. The other senators shared this concern, troubled by the pressure Pompey’s return exerted on them.
Pompey’s impressive military achievements posed a significant challenge. The senators feared that if Pompey chose to rule Rome as he wished, they would be powerless to stop him.
Crassus suggested a strategic approach.
“We’ve demonstrated our authority and power by dealing with Catiline. But Pompey commands not only authority and power but also widespread popular support. We need to secure the people’s support to effectively counter him.”
“How can we win their support? The citizens are almost hostile toward us now.”
“It’s simple. By resolving the Catiline issue and passing the reform bill, we can shift the citizens' focus away from Catiline’s rebellion and towards praising the Senate. People’s attention is fleeting.”
“So passing the reform now might indeed divert the citizens’ attention from Pompey.”
“Exactly. I advise you to approach tomorrow’s assembly with an open mind. Be receptive to any useful suggestions. I’ve reviewed the proposals and found them reasonable, so there’s no need for concern.”
With a heightened sense of urgency and anticipation, it was almost a foregone conclusion that Marcus’s proposal would be accepted.
However, the Senate was not resting on its laurels. They received reports that Pompey’s army had left the east and was on its way back, just as Crassus and Cicero had predicted.
The winds of change were still blowing, and whether they would escalate into a fierce storm or dissipate into a gentle breeze depended on the choices made by Pompey and the Senate.