The Mad Tycoon of Rome

Chapter 65: Marcus’s Reforms

Chapter 65. Marcus’s Reforms >

“The first thing we need to do is to reform the tax system.”

The senators, who had been listening calmly to his explanation, jumped up.

“Tax reform?!”

“That’s too sensitive a matter, even for you!”

“I know. That’s why I suggest we try it out for a year as a pilot project. First of all, we have to abolish the special tax that is levied on the provincials, and strictly enforce the legal tax rate.

We also have to lower the tax rate for items that are too high, to reduce the resistance of the citizens. We have to revise the law so that we can check the excessive abuses of the tax collectors from the governor’s level. In other words, we have to focus on operating the system transparently, rather than simply collecting more money.”

The biggest cause of tax evasion was ultimately the resistance to taxes.

The high tax rate and the opaque tax system were the main culprits that increased this resistance to an extreme degree.

However, the senior senators who believed that increasing taxes was beneficial for Rome showed a sour reaction.

Especially those veterans who had been governors of provinces frowned openly.

“I understand your intention, but things don’t always go as you wish in this world. That’s a common mistake young people make. Fair and transparent system operation is good, but what’s more important is securing revenue.”

“I fully agree with your opinion. The most important thing is securing stable revenue. That’s why I’m making this proposal.”

Lucullus raised his eyebrows and retorted.

“Are you saying that more taxes will be collected if we do as you say? Even though you lowered the tax rate?”

“Absolutely. The current provincial tax rate in Rome is not high at all, but it changes when special taxes are included.

On top of that, due to the abuses of the tax collectors, the actual tax rate is much higher than it should be in many cases. So naturally, the provincials try every possible way to avoid paying taxes. As a result, the reality is that we don’t even get as much taxes as we should.”

Marcus handed over a detailed report on the tax situation to Lucullus himself.

Lucullus and other veterans sneered as they read down the report.

Marcus’s words were not wrong at all.

In fact, most places paid less than they should have.

“Really.”

“Yes. That’s why I think we need a system improvement that reduces the resistance of taxpayers as much as possible. If revenue increases, it will also be easier to implement various policies to prevent the downfall of self-employed farmers, who are the backbone of Rome.”

“But that’s based on the assumption that revenue will increase. What if we do as you say and next year’s revenue decreases? How are you going to deal with that? Even if we restore the system to its original state, who can compensate for the cost and loss incurred in the meantime?”

“I’ll compensate for it.”

Marcus answered nonchalantly.

The square became silent as if a mouse had died.

Lucullus stuttered and asked again.

“You, you’ll compensate? How?”

“If revenue decreases compared to this year, I’ll fill in twice the difference in the treasury. I believe that would be enough compensation for the loss.”

“Heh… Are you so confident about that?”

Lucullus glanced at Crassus behind Marcus.

There was no sign of movement on his face, whether it was something they had already discussed or not.

Lucullus and other veterans also closed their mouths as if they had never opposed it.

What more could they say when he said he would fill in with his own money if taxes were collected more or less?

Considering Crassus’s wealth, he could easily compensate even if revenue was halved.

If revenue actually increased, they could continue like that, and if not, they could go back to how it was before.

The less taxes were collected, the more Marcus would have to pay, so there was no loss for the Senate.

Above all, if they lowered the actual tax rate and revenue increased, they could please the citizens while also achieving their goals.

There was no reason not to try it once.

Of course, Marcus was confident that revenue would increase.

The reason was simple.

This policy was actually implemented by Caesar and Augustus in history and proved effective.

He had tweaked some details more rationally, but the basic framework was the same.

Since he knew the future results, it was not difficult to package them with plausible grounds.

Marcus also proposed policies such as a transfer loan that allowed people who were paying too high interest rates to switch to lower ones, long-term low-interest loans for the commoners, and a policy that provided simple jobs for the unemployed through state intervention.

He only brought out the policies that were used in modern times and were feasible in Rome.

And the laws to implement these policies naturally created the conditions for the emergence of a modern form of banking.

Pursuing public and personal interests at the same time was Marcus’s basic principle.

This time was no different.

He intended to solve Rome’s problems and satisfy his own interests by establishing a bank.

Marcus argued that this new concept of institution was essential for the future.

“The core of finance is stability and reliability. If we don’t operate the system through a credible institution, it will inevitably collapse somewhere.”

“This bank does more than just deposit and lend money. It breaks away from the individual-centered financial system and enables many things that were impossible before. For example, the low recovery rate of the loan business that the legal officer Aloysius was worried about at first can be dramatically improved.”

“How so? It’s not like the debtors suddenly have the ability to pay back their money just because you create such an institution.”

“To be precise, we can select the debtors who have the ability to pay back much more accurately. We will operate professional staffs who will continuously evaluate the creditworthiness of the people who come to borrow money.

We will be able to objectively assess the repayment ability of the debtors like never before. Then, the loyal and good customers will be happy to borrow money at low interest rates, and the lenders will be satisfied to recover their principal safely.”

“So you mean to reduce the risk burden by judging the possibility of recovery more reliably. Then you don’t have to set high interest rates and lose money.”

He stopped at a suitable point to explain what the bank could do. It would take a whole day to talk about it if he wanted to.

It was best for the Senate to know only superficially about the bank.

Marcus deliberately started a solemn speech to prevent the senators from asking further questions.

“Honorable senators and citizens. Our Rome has been founded for almost 700 years now. It has been 450 years since we adopted the excellent system of republicanism.

During that time, we watched many great powers fall and disappear into the back alleys of history. The Macedonian empire of Alexander the Great, who ruled the world, was divided into four.

And among those four empires, only the Ptolemaic dynasty of Egypt maintains the form of a country.

What about Egypt? Egypt was a great power that ruled the world before Rome was born. Is there anyone here who doesn’t know about the splendor of ancient Egypt?”

Most of the senators smirked at Marcus’s question. 

There was no one who lacked education enough to not know that, at least in the Senate and the knight class.

“Egypt is said to have existed since ancient times when gods walked on earth. But what about now? They have become so weak that they can’t properly respond to foreign invasions without our protection. Egypt is still better off because it maintains its national form. Think of Epirus and Carthage!”

The faces of the citizens hardened as they recalled Pyrrhus and Hannibal, who inflicted indelible wounds on Rome. 

Marcus continued his speech with satisfaction as he elicited the intended reaction.

“Rome still hasn’t forgotten that nightmare. But where are those two countries that were so strong? They were destroyed so that no trace of their nation could be found.

The enemies who were so brave and powerful only exist in our memory now. Why do you think so many great powers in history have fallen and declined?

Is it because it is natural for them to perish when the moon waxes and wanes? No! They perished because they couldn’t keep up with the changing times.

But our Rome is different. We accepted without hesitation any superior technology and civilization that our enemies had, and sublimated them into ours.

This flexible attitude made Rome a great power that conquered the world. It is a great achievement made by our wise ancestors who led the country well and by our citizens who followed them faithfully! I would like to express my deep respect and gratitude to you all for creating this great nation.”

Marcus paused and bowed politely to the senators and citizens in front of him.

An undeniable pride flashed across everyone’s faces.

They felt proud of what their ancestors and themselves had achieved.

The people nodded their heads and focused on Marcus’s next story.

“But Rome’s system is not perfect either. Because there is no perfect system in the world. Our wise ancestors knew this well and changed laws and systems accordingly as times changed.

In the war with Carthage, they introduced a war tax and nobles took the lead in paying taxes. When the traditional citizen army reached its limit, they formed legions and brilliantly repelled the threat of Germania.

Our ancestors overcame crises by leaving behind old systems and introducing new methods. And right now we are being asked to make a choice that is not shameful to our ancestors.

To keep Rome as a great nation as it is now, to not be recorded as a past great power in history that will be written a thousand years later, please make the best decision for the future of the republic.”

Marcus’s earnest appeal, which stirred up patriotism, made everyone’s hearts boil.

‘To keep Rome great’ was a slogan that touched the hearts of the senators.

Especially, Marcus praised the Senate for leading Rome until now.

He also did not forget to mention the contribution of the citizens who supported them.

It was an effective speech that won the favor of both classes.

The applause and cheers that shook the square lasted for several minutes.

Some of the elders came up to the podium and praised Marcus’s composure and thanked him for his hard work.

The senators who had no idea of Marcus’s true intentions soon gathered together and started a meeting.

The tribunes were sweating to calm down the citizens who shouted to legislate the reform bill right away.

Surprisingly, it didn’t take long for a conclusion to come out.

Consul Silanus went up to the podium and raised Marcus’s hand with a bang and shouted.

“Considering the aspirations 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. 

• • They couldn’t believe that the conservative and stingy Senate made a decision so quickly.

Silanus said that the Senate was always on the side of the citizens and would prove it with their actions in the future.

Some of the citizens who hated the Senate felt ashamed for a moment.

The Senate thought that the citizens were nothing but a nuisance and that they only cared about gaining power.

The citizens began to accept that the execution of Catiline was an inevitable thing.

It was all according to the Senate’s plan.

The reason why they accepted the reform so easily was because there was some kind of agreement behind the scenes.

Everyone agreed that there was no time more urgent than now for reform.

The first and second reasons were as mentioned before: the social consensus and the improved financial situation. But the most important thing was the third reason.

The day before the assembly, Cicero and Crassus, who had received Marcus’s request, fanned the sense of crisis among the senators.

They had a very good opportunity.

It was the existence of Pompey, who had finished reorganizing his province and was preparing to return.

“If Pompey returns, we will inevitably have to make a choice. Whether to submit to the shining war hero and let him lead the political situation, or to curb Pompey’s arrogance. We don’t have much time left to choose.”

Cicero was personally close to Pompey, but protecting the order of the republic was a more important issue than that.

The other senators’ thoughts were not much different.

Their mood sank as they thought of Pompey, who was returning with great military achievements.

Pompey’s existence was a tremendous pressure on the current Senate.

If he decided to rule Rome as he pleased, how could the Senate stop him?

The senators’ faces darkened at the thought of what might happen.

Crassus came up with a clever idea here.

“We have shown enough authority and power by executing Catiline. But Pompey has not only authority and power, but also the full support of the people. We need to win the support of the people in order to confront him.”

“How can we get their support? The citizens are almost afraid of us now.”

“It’s a simple matter if we settle Catiline’s problem and pass the reform bill. Then the citizens will forget about Catiline’s rebellion and praise the name of the Senate. That’s how crowds are.”

“Well, passing the reform at this time might distract the citizens’ attention from Pompey.”

“Yes. So I hope you attend tomorrow’s assembly with an open mind. If you hear any useful opinions, act as if you accept them actively. I’ve reviewed them and there’s nothing unreasonable, so don’t worry.”

Having raised their sense of crisis and expectation appropriately, it was only natural that Marcus’s proposal would be accepted.

But the Senate was not just sitting back and feeling proud of their achievements.

They received a report that Pompey’s army had left the east and started to return, as Crassus and Cicero had warned.

The wind that shook the era had not stopped yet.

Whether it would turn into a fiercer storm or end as a gentle breeze depended on what choice Pompey and the Senate made.

< End of Chapter 65. Marcus’s Reform >