The memorial addressed the chaotic state of Great Yong’s household registration system. Wang Cang Hai highlighted the vast wealth gap in the kingdom, which forced impoverished citizens to abandon their homes in search of work. Many refugees were displaced by natural disasters or punished as the families of convicted officials, leading to social instability and overpopulation in cities while smaller towns and villages suffered population declines.
To address these issues, Wang Cang Hai proposed a comprehensive household registration reform and tax system overhaul. He recommended collecting taxes on a per-household basis, registering citizens based on their settlement location, and drafting practical solutions for mitigating future issues. To convince the emperor, Wang Cang Hai painstakingly compiled twenty years of case files from the Ministry of Revenue, annotating each with solutions and preventative measures.
Emperor Yuan Hong was stunned after reading the memorial and dispatched a royal carriage to bring the young prodigy to the palace for further discussion. By then, the emperor was over sixty years old. Upon meeting the thirteen-year-old Wang Cang Hai, he was not only overjoyed to have found such a brilliant talent but also felt a deep, paternal affection for the boy. He summoned the crown prince (later Emperor Xiao Wen) to join them, and the three spent the night discussing administrative policies by candlelight until dawn.
The next morning, Wang Cheng Xing arrived at the palace gates to escort his son home, only to receive an imperial decree along with him: thirteen-year-old Wang Cang Hai was appointed as a third-rank assistant minister in the Ministry of Revenue, immediately outranking his own father.
For the next decade, Wang Cang Hai’s Winter Memorial was required reading for all new Ministry of Revenue officials until Wang Cang Hai himself declared it outdated.
Now, with Wang Cang Hai unexpectedly asking Wang Chao about this famous work, everyone present was caught off guard.
Wang Cang Hai followed up with another question to test whether Wang Chao had truly “read” his work: “At the end of last month’s census, after twenty-six months of reforestation and cultivation in the northwest desert, the population here reached 22,311 households. Last year was the reclamation year, so no taxes were levied. This year, the first year of settlement, we’re collecting only half the usual tax. According to the regulations, next year and the year after will also see reduced taxes. From the fourth year onward, full taxes will be collected, in line with other counties.
“If the population growth rate remains constant, can you calculate the total tax revenue by the fifth year?” Wang Cang Hai fixed his gaze on Wang Chao.
Wang Chao widened his eyes, deep in thought. After a moment, he cautiously answered, “This year’s tax revenue is… approximately… maybe… 100,000 taels of silver?”
Wang Cang Hai’s eyes signaled that he was correct and should continue.
Swallowing hard, Wang Chao pressed on: “100,000 in the first year, 300,000 in the second, 450,000 in the third, 1,280,000 in the fourth, and 1,650,000 in the fifth year.”
Hearing the calculations, Wan San’s eyes lit up, and he couldn’t resist interjecting. “Impressive speed! But don’t forget, under Great Yong law, when county taxes exceed 500,000 taels, a portion must be refunded to farmers and merchants.”
Wang Chao nodded rapidly. “Young Master Wan has much more experience in commerce and considers things thoroughly. Starting from the fourth year, I’ll factor in a rebate rate of 1.9%.”
“It’s not one point nine,” Wang Cang Hai corrected. “Since we’re including merchant taxes, we can’t use just the agricultural rate. Although the share of commercial operations will increase annually with population growth, we must roughly estimate additional out-of-pocket business expenses. Using one point one percent for deductions will yield a smaller margin of error.”
Both Wang Chao and Wan San nodded in agreement.
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