If France had as sound a financial situation as England does now, it could issue special government bonds to bridge a six-month fiscal gap.
But the French Government had previously exhausted the bond market in dealing with the over two billion in debt; even if they were to raise the bond interest to 12%, it would likely be difficult to sell many.
Joseph nodded solemnly as well. Based on the French Government's annual revenue of five hundred million francs, at least two hundred and fifty million would need to be raised at once to kick-start the abolition of the tax farming system—the money would keep the government going for the first half of the year, and the taxes collected during that period would sustain it for the second half.
However, to be on the safer side, perhaps three hundred million francs would be necessary.
Joseph quickly recalled past examples of fundraisers, realizing that there could still be cards to play in fields like banking, insurance, and securities.
He selected a few alternatives and said to Mirabeau, "I will find a way to deal with financial matters. The tax reform must be promoted as soon as possible.
"You may begin by contacting the forces that support reform and start creating a buzz in anticipation. I will propose the establishment of the National Tax Bureau at the next Cabinet meeting as a starting point for the government to take over tax collection.
"The next steps will have to wait until the money issue is resolved."
"Yes, Your Highness."
When Bailly heard "National Tax Bureau," it immediately brought another issue to mind, "Your Highness, all tax collection duties are currently performed by tax farmers, and the government lacks any experience in taxation. I'm concerned this could lead to chaos in tax collection."
Originally, Louis XIV outsourced tax collection to tax farmers because the government's tax officers were mediocre, and evasion and underreporting were rampant. Tax officers sometimes colluded with taxpayers, pocketing bribes and allowing them to avoid payment.
After the tax farmers took over, they paid the government a fixed sum upfront and then assumed full responsibility for the profit or loss, ensuring not a single cent of tax due was missed.
Joseph smiled, "I have ways to deal with this, so there's no need for worry."
For an 18th-century government, avoiding tax evasion was a major challenge, but Joseph had read the "textbook" on this—the methods of the modern-day United States IRS could simply be copied.
The IRS is the United States National Tax Bureau. Americans might not fear police or officials, but nobody dares cross the IRS. There was once a mob boss involved in murder and a host of other crimes, whom even the FBI couldn't touch. In the end, the IRS took him down, swiftly incarcerating him and completely dismantling his gang.
Besides the IRS, Joseph had many other tax "weapons" at his disposal, such as an invoicing system, personal tax system, tax declaration system, and so on.
Modern government tax departments have come up with all sorts of tricks to boost tax revenue, even handling accountants specializing in tax avoidance of the 21st century, let alone taxpayers of the 18th century.
Of course, these were theoretical. Joseph anticipated some turbulence in implementing tax reform, but for France's business environment, it was a necessary undertaking.
Moreover, by abolishing the tax farmers system, the tens of millions of francs that went into tax farmers' pockets each year could significantly improve France's finances—it was worth taking some risks for the benefits of killing two birds with one stone.
Bailly then submitted the report on the previous year's commercial development. The two ministers reported to Joseph late into the night about matters concerning France's trade and industry, departing reluctantly after hints from Eman.
The clock was nearing half-past eleven, but Joseph was still perusing the report, occasionally lifting the teacup on the table for a sip.
Last year, France's total trade volume had reached an astonishing one billion francs, even coming close to England's forty-nine million British Pounds, which is equivalent to 1.22 billion francs.
Yet the profit France gained from foreign trade was far less than England's, given that a large portion of France's trade was with European countries, while England could exploit its colonies, purchasing raw materials cheaply and selling industrial goods at high prices without fear of competition and with virtually no tariffs.
Even the United States, nominally a French ally and a former British Colony, still had all of its industry built to complement England's, leading to significant dependence on it. Though now independent, its trade contribution was only slightly less than during the colonial era.
In summary, the profit France derived from trade each year was roughly half of what the British earned, despite supporting a population more than three times that of England. England's population was less than ten million, while France's was thirty million.
This was the result of Joseph's constant push; historically, by 1790, French industry had begun collapsing, with only wine maintaining some sales, until Napoleon forcefully opened European markets with cannons and kicked out British goods.
Joseph knew that as the strongest country on the European Continent, France would at any moment face England's retaliation, guided by its policy of maintaining European balance.
The policy of European balance meant that England would never allow an individual country on the European Continent to overpower others and dominate, ensuring England's absolute influence over Europe.
In practice, this meant toppling the strongest nation on the continent with the help of other countries.
The appearance of the Anti-French Alliance in history seemed on the surface to be a response to France's Revolution and the beheading of the Royal Family, inciting the wrath of other monarchs.
But at its core, it was because Germany and Austria were long weakened, allowing France to become the dominant power on the Continent, thus drawing the British's concern. Otherwise, one might note that England was the first to have a revolution and behead its monarch, currently governed by Congress—yet it stood with other kings against France?
Therefore, having largely neutralized the domestic revolutionary crisis, Joseph's strategic focus had now shifted to preparing for the inevitable "European balance" blow from England.
In the era of the Industrial Revolution, to challenge England, it was paramount to first surpass them in industry and trade.
Joseph glanced at the world map on the wall, the swathes of British Colonies pressuring him enormously.
Resolve and confidence flashed in his eyes. Once he led France to catch up in trade and industry, he was determined to build a strong fleet, defeat the esteemed British navy, drive them out of all colonies, and accomplish what Napoleon could not in his lifetime.
To win meant to beat England!
Of course, one had to eat one bite at a time.
For now, he would have to devote a substantial amount of time and energy to domestic reforms and then ensure the stability of the markets acquired from Germany while trying to expand their foothold in North Africa.