CM Fiscal Policies 1789-91

Question 1

What did the Assembly begin to issue and when? What did this cause?

Answer 1

• From December 1789
• Assignats which were government bonds eventually used like paper money and NA used to pay off debts
• Excessive printing caused inflation

Question 2

What did the NA order?

Answer 2

• One-off ‘patriotic contribution’ of 25% of income paid over 2 years by all whose income was greater than 400 livres a year

Question 3

Why was the patriotic payment insufficient?

Answer 3

• Insufficient to allow for a reduction in taxation elsewhere
• Still indirect tax on salt (gabelle) until March 1790
• Aides on drinks, state monopoly on tobacco all remained up to 1791

Question 4

Descrinbe the economic restructuring programme. What did it replace?

Answer 4

• Replaced taille and vigntieme

- Became operational in 1791 introducing land tax, poll/property tax and limited tax on commercial opportunity

Question 5

Did the economic restructuring help?

Answer 5

• In practice difficult to assess these fairly and sort of too little too late, tax burden varied as it was complex to assess
• Overall fairer than before and provided a good base for further reform