TAX REVENUE AND STATE FINANCE: A STUDY OF THE TWO TAX HIKES IN LATE MING CHINA

Abstract

This thesis studies why the late Ming state failed to raise her tax revenues to meet the rising spending needs between 1570s and 1630s. I use two tax hikes imposed between 1590s and 1630s as case studies. The first case was a commercial tax increase introduced by Emperor Wanli (r.1573-1620), and the second one was an increase in land tax when the war with Manchu broke out in 1618. In both cases, socio-economic expansion created tremendous difficulties for the Ming state to acquire knowledge about economic activities and monitor her tax collectors closely. Consequently, Emperor Wanli’s commercial tax policy was overwhelmed by local officials and powerful people who had better control of local markets. Land tax hike also backfired, because illegal surcharges exacerbated tax inequality especially when the tax was increased. The result is a fiscally weak state despite an expanding economy.