Chapter 40: Implementation of the New Tax System

In the carriage, the rhythmic clatter of hooves against the cobblestone filled the silence as Arthur gazed out at the passing streets of Eldoria.

Klein, seated across from him, studied his expression before asking, "How are you feeling, Your Majesty?"

Arthur knew Klein was referring to the upcoming tax system announcement in the central square. He smirked slightly and replied, "Well, I'm not sick, so I'd say I'm fine."

Then, with a chuckle, he admitted, "Honestly, I think I'll be alright. This isn't my first public address. But… this is one of the most important announcements I've made so far. So, to be truthful, I am a bit nervous."

Klein nodded, his gaze steady. "You'll do just fine. I've seen how hard you've worked these past months to improve the kingdom. The people will see it too."

Arthur exhaled and tightened his grip on the parchment containing his speech. "Thanks for the encouragement."

With that, Arthur turned his attention back to the document, quietly rehearsing his words, ensuring each sentence carried the weight and clarity needed for the occasion.

The journey continued in relative silence until, finally, the carriage slowed to a halt. The faint murmur of a gathered crowd grew louder.

Arthur took a deep breath as the door opened. Stepping out, he was met with the sight of Eldoria's central square—packed with citizens, all awaiting the announcement that would shape their future.

Straightening his posture, Arthur strode toward the podium, ready to address his people.

As he looked over the crowd, a thought crossed his mind. Damn, this is a lot of people, got to be at least three times more than my last announcement. Well, that makes sense. This decision will affect their lives in a big way. Of course, they'd all come to hear it.

Taking a deep breath, Arthur exhaled slowly, then stepped forward and spoke, his voice carrying over the hushed murmurs of the gathered crowd.

"People of Keldoria," he began, his tone strong and authoritative, "I stand before you today to introduce a change—one that will not only shape our present but lay the foundation for a stronger future."

The crowd listened intently, anticipation thick in the air. Arthur met their gazes, ensuring his presence commanded their attention.

"For generations, The burden of taxation has been unfairly placed upon those who could least afford it. That changes today. No longer will a person struggling to feed his family be expected to pay the same as a noble who feasts in luxury."

A wave of murmurs rippled through the crowd. Some exchanged uncertain glances, while others leaned in, hanging onto his every word.

Arthur let the anticipation build for a moment before continuing, his voice steady and resolute.

"From this day forward, our kingdom will adopt a progressive tax system—one designed to be fair and just. Each citizen will contribute according to their means. No longer will those who struggle to make ends meet bear the same burden as the wealthy."

The crowd's murmurs grew louder, a mixture of curiosity and cautious optimism spreading among them. Arthur raised his hand slightly, signaling for their attention before explaining the tax further.

"For those earning less than six gold coins a year, there will be no tax. You will not be forced to give up what little you have just to survive.

Those earning between six and fifteen gold coins annually will contribute 19% of their income.

For those making between fifteen and thirty-seven gold coins and five silver, the tax rate will be 28%.

If your income falls between thirty-seven gold coins and five silver up to ninety-three gold coins, seven silver, and five copper, the tax rate will be 34%.

And finally, those earning above ninety-three gold coins, seven silver, and five copper per year will pay 40% in taxes."

The square fell into silence as the people processed Arthur's words. Some whispered among themselves, while others furrowed their brows in thought. Arthur could see a mix of relief from the lower earners and apprehension from the wealthier citizens.

Arthur raised a hand to calm the murmurs and continued, "Rest assured, for those who earn beyond a given tax bracket, the calculation will be fair. For example, if you earn more than sixteen gold coins annually, you won't be taxed at 28% on the entire sum. Instead, only the portion exceeding the threshold—one gold coin in this case—will be taxed at the higher rate, while the first fifteen gold coins will remain taxed at 19%."

The crowd nodded as the explanation sank in. Arthur took a breath before moving on. "Additionally, taxes will be assessed on an annual basis. However, paying a lump sum at the end of the year would be difficult for most citizens, as many might struggle to set aside the necessary amount. Therefore, we will implement a Pay-As-You-Go (PAYG) system for tax collection. Taxes will be collected either fortnightly, monthly, or quarterly. If you are employed, your employer will report your earnings to the tax collectors, who will deduct a percentage of your wages based on an estimated tax bracket."

He paused for a moment before adding, "However, at the end of November, all incomes will be reviewed to ensure the correct tax bracket was applied. If the tax collectors took more than what was due, you will receive a refund. Conversely, if your taxes were underestimated, you will be required to pay the difference."

Arthur then elaborated on taxation for sole traders such as merchants and craftsmen. However, for businesses like restaurants and shops, Arthur made taxation follow a flat rate instead of a progressive structure. Arthur then proceeded to introduce specialized taxes, such as luxury taxes on extravagant goods, tariffs on imported items and more. However, Arthur doesn't include taxes such as goods and services tax which would not benefit the kingdom at the moment.

After hours of explanation, Arthur concluded, "That is all for the tax system. However, if you are still uncertain or require further guidance, we have established the Keldoria Tax Office (KTO), where officials will be available to answer your questions. Additionally, you may visit your nearest church for assistance. We have partnered with the local clergy to foster stronger ties between the tax office and the religious community. The priests and priestesses will also be available to provide guidance, regardless of your wealth or status."

Arthur then added, "This system may seem burdensome to some, but rest assured, I will not squander the tax money. Every coin will be used to strengthen our kingdom—to build public schools, improve roads, enhance trade, and invest in infrastructure. As the kingdom prospers, so too will its people."

He scanned the crowd, his gaze firm yet reassuring. "A prosperous kingdom is not built by rulers alone, but by the cooperation and contributions of its people. With your support, we can create a future where everyone, regardless of status, has the opportunity to thrive."

A wave of applause erupted, louder and more resolute than before. Cheers rippled through the crowd, mingling with murmurs of approval. Yet, Arthur didn't miss the tense expressions among some of the wealthier citizens—merchants, business owners, and minor nobles—who clearly disliked the changes but had no choice but to accept them.

Arthur suppressed a smirk. Well since I have dominated my way through high ranking nobles and influential figures to agree with me with the influence of both dukes. So, I don't really need to be concerned about some wealthier people. He thought. They don't have the power to go against me at all. Also when they leave they will have to pay exit tax so they will have no choice but to stay if they want their wealth to remain. Still this will also benefit them if the kingdom improves. Is not like I am robbing them, I am just trying to improve the kingdom. 

Arthur refocus his thought, stepped down from the podium and made his way toward the waiting carriage. The moment someone shut the door behind him, Klein—seated across from him—offered an approving bow.

"That went well," Klein remarked. "You handled their concerns efficiently, and most of the people seem satisfied with the system."

Arthur exhaled slowly, leaning back against the seat. "It's a start," he said. "Now it is time to execute the reform correctly."

As the carriage began its journey back to the palace, Arthur gazed out the window, watching the city pass by. The tax system is in place now. I've done my part. Now it's up to Ben and the KTO to carry it out carefully. Arthur then thought about the detailed explanations he had provided to ensure the office ran smoothly.

I've trained them well enough. Now, I can shift my focus more to industrializing Keldoria and to modernize this kingdom.

—

In the grand palace of Elysia, a man dressed in elegant attire stepped forward and bowed. "Your Majesty, King Arthur has introduced a tax system unlike anything ever seen in his kingdom."

He carefully placed a document detailing Keldoria's new tax structure into the hands of John Berry, the King of Elysia.

John scanned the document for a moment before letting out a hearty laugh. "I must admit, his plan is well thought out and meticulously calculated. But in the end, he's still the fool he's always been. He may have changed, but he truly believes the nobility will accept this without resistance? Preposterous."

A sly smirk crossed his face as he leaned back on his throne. "This works in our favor. We need only wait for the inevitable infighting among his own ranks. Once their forces are weakened, that will be our moment to strike. Even with Chronos aiding Arthur, our chances of victory will be far greater."

The man nodded, a glint of admiration in his eyes. "As wise as ever, Your Majesty."

—

In the grand palace of Chronos, a woman dressed in an elegant gown stepped forward. "Father, I've heard that King Arthur has introduced a new tax system in his kingdom. He calls it a 'progressive tax system'—something we've neither seen nor used before. Here is the document detailing his reforms."

Brandon Rivas, King of Chronos, clad in a regal, finely tailored suit, took the document from her hands and began reading.

As his eyes scanned the pages, his expression darkened. "Is Arthur a complete fool?" he scoffed. "There have been rumors of his change over the past three months, but I suppose that's all they were—just rumors. How arrogant must he be to demand a 40% tax from the most powerful and influential figures in his kingdom? There's no way he'll keep the nobility under control. A war between him and his own lords is inevitable."

He set the document down with a sigh, his fingers tapping against the armrest of his throne. "Fetch me a messenger bird. I need to send that fool a warning—if he doesn't tread carefully, he'll get himself killed. And if that happens, Elysia will waste no time invading. I still have use for him and his military… not to mention the nine million he owes me."

Without hesitation, the woman hurried off and returned moments later with a messenger bird. Brandon swiftly penned his letter, attached it to the bird, and sent it soaring toward Keldoria.

---

Not part of the story. 

We have finally completed the purge of corruption within the royal palace, cleared 80% of Arthur's reputation as an incompetent king, and secured the support of most nobles—whether they liked it or not—including the backing of two powerful dukes. These were all crucial steps in Project Stabilization.

With the kingdom now stable enough to withstand major reforms, we have officially announced and implemented the new tax system without risking collapse. With this milestone achieved, our next step will be advancing Keldoria toward industrial development.

Thank you for sticking with the story so far!

However, I'll be taking a short break—around a week, maybe up to 1.5 weeks max. See you soon!