Chapter 263 Some Financial Discussion Part 1



Three days later, in the Palace of Versailles, Napoleon remained confined to his office, deprived of any opportunity to spend time with his family. He rubbed his temples in frustration and muttered to himself.

"I'm starting to despise this bureaucratic work. It feels like every day is just another day of endless paperwork."

Glancing at the towering stack of documents awaiting his attention, he sighed deeply. The never-ending administrative duties were taking a toll on him.

"At this point, I'd prefer to be on the battlefield," Napoleon grumbled. "There, the paperwork is minimal, and the focus is on combat rather than these endless documents."

Napoleon leaned back in his ornate chair, his thoughts drifting momentarily from the burdens of his office to memories of past battles and campaigns. He missed the thrill of leading his troops into the chaos of war, the smell of gunpowder in the air, and the strategic challenges that had once consumed his mind.

The relentless paperwork before him seemed almost cruel in comparison. He knew, however, that his role as First Consul of France required more than just military prowess. It demanded the careful management of the nation, and that meant slogging through mountains of bureaucratic documents.

With a resigned sigh, he picked up a pen and got back to the monotonous task at hand.

As Napoleon was grappling with the paperwork, there came a knock on the door. He glanced up, a bit annoyed at the interruption.

"Come in," he called out, his gaze fixed on the paperwork, his hands never halting.

The door creaked open, and Beaumont entered. "Your Excellency, you have a visitor."

"A visitor?" Napoleon repeated. "I don't remember having an appointment with anyone today. Who is it?"

"It's Jacques Necker, Minister of Finance," Beaumont revealed.

Napoleon stopped writing and looked up from the paperwork. "Necker?"

He continued, "Allow me to elaborate, Your Excellency. When industrialists are granted tax breaks and choose to invest in vital infrastructure, the effects on our economy are fourfold.

Firstly, tax incentives serve as a catalyst for industrialists to direct their resources toward infrastructure development, business expansion, and other initiatives that stimulate economic growth. This, in turn, results in heightened production, the creation of job opportunities, and increased individual incomes, all of which contribute to the overarching expansion of our economy.

Secondly, as our economy experiences growth, the tax base – encompassing the total income and economic activities subject to taxation – undergoes expansion as well. This signifies that even with the reduction of tax rates or the provision of tax incentives for specific endeavors, the overall tax revenue generated from a more extensive tax base can counterbalance the immediate revenue loss attributed to these tax breaks.

Thirdly, the tax savings industrialists gain through these incentives often find their way back into their businesses. This encourages augmented expenditures on materials, equipment, labor, and various other goods and services. Such heightened economic activity not only further stimulates our economy but also generates additional tax revenue through mechanisms such as sales taxes and other indirect taxes.

Lastly, tax incentives that promote increased hiring by businesses can effectively reduce unemployment rates. This, in turn, results in an upswing in personal income tax revenue as more individuals become active participants in the workforce."

Taking all that in, Napoleon sighed. "I understand now. So, how long should the tax break last if I were to grant it?

Necker responded with a straightforward and pragmatic tone, taking into account Napoleon's inquiry.

"Your Excellency, the duration of the tax break, if granted, would ideally align with the projected timeline of infrastructure development and economic growth in the colonies. Since we are talking about heavy industries..." he paused and raised a hand. "Five years, grant them a five-year tax break and I assure you, Your Excellency, the economy of France would witness significant development and growth in that timeframe."

Napoleon nodded. "Fine."

"Great!" Necker beamed a smile. "Oh, I forgot to say this, Your Excellency, the Banque de France is issuing new banknotes to facilitate the increase in economic activities and trade within our colonial territories. This will further support the development efforts during the tax break period. And speaking of banks, Your Excellency, a lot of private individuals want to start their own banking business."

Napoleon hummed aloud. "I don't know about that. Let's come up with a regulatory body and whatever things are necessary to ensure that these private banks operate within a framework that's in line with our economic goals and stability. We don't want unregulated banking activities causing financial chaos."

"I can help you come up with one, Your Excellency," Necker proposed.

"That would be great," Napoleon said. "Okay, this has been a productive discussion. Is there anything else you'd like to discuss?"

"Yes, Your Excellency. We could increase our economy in other ways. Your Excellency, how versed are you in the stock exchange?"