This doctoral dissertation intends to explore the financial relationship between the central government and local governments in the middle and late Tang dynasties, and analyze how the interaction between the two changed the financial power of prefectures (Zhou 州) and Fanzhen (feudal towns 藩鎮) in the late Tang Dynasty, Ultimately led to the rise of local independent, and whether it planted the opportunity for the emergence of a set of financial institutions in the Five Dynasties Northern Song Dynasty. I chooses the tax distribution model in the Two Tax Laws (兩稅法) , and tea tax (稅茶) as the starting point for observation.
The Two Tax Law was established by Prime Minister Yang Yan (楊炎) in first year of Jianzhong (建中元年), aiming to improve the situation of insufficient tax collection by the central government and unauthorized collection of miscellaneous taxes by local governments since the Anshi Rebellion (安史之亂), and in order to adapt to the large-scale movement of the population: the poll tax was abolished and replaced with a single tax, the asset tax, and the local government was ordered to stop the collection of various miscellaneous taxes. In response to the accession of the clan towns, the tax distribution model was also divide the Two Tax Law into three parts: Shanggong (上供), Liushi (留使), Liuzhou (留州). For the towns and prefectures, staying in the prefecture and keeping money and goods cannot cope with emergencies; Moreover, after the implementation of the Two Tax laws, the attitude of the central government towards local finances is that local governments need to take care of the surplus or loss of their own budgets. Based on these factors, the attitude between the central government and local governments towards the Two Tax Law is more cooperative than confrontational.
The tax tea was set up in the ninth year of the Zhenyuan. (貞元) Initially, two levy models were planned, one was levied on tea merchants selling tea in the market, and the other was levied on tea merchants who bought tea near tea gardens. Although the tax tea was proposed by the Yantiezhuanyunshi (鹽鐵轉運使), the central government finally handed over the management of tax tea to the newly established the Hubushi (戶部使) based on the consideration of the balance of power. But the Hubushi lack of administrative resources to accommodate two very different tax models, as well as the growing tea smuggling trade, also plagued the central government. Therefore, in the first year of Changqing (長慶), Wangbao (王播) promote the management of tax tea zoning, changing the two tax methods to the remaining production area collection, and taking the origin as the division, the tax tea in Jianghuai (江淮), Lingnan (嶺南), Liangzhe (兩浙), Fujian (福建)under the Yantiezhuanyunshi control, and the Hubushi only the tax tea business in the Jiannan (劍南) area remains. in September of Dahe’s (大和) ninth year, WangYa (王涯) promoted a tea monopoly policy, which was very radical, requiring tea farmers in Jianghuai and other regions to migrate to state-owned tea gardens and burn their own tea stocks. Due to the fierce backlash and Sweet Dew incident (甘露之變), the state-owned tea garden policy was immediately cancelled at the end of the same year, and LiShi (李石) changed tea to tax tea in the first year of Kaicheng (開成).
In addition to restoring tax tea, LiShi also delegated the collection of tax tea to the prefecture and placed it under the supervision of the fanzhen. This policy was formulated to deal with the prevalent tea smuggling trade, and highlighted that the Yantiezhuanyunshi had no more administrative resources in late Tang dynasty. Therefore, the Yantiezhuanyunshi department delegated the right to collect tax tea, shared the tax revenue of tax tea with local governments, and handed over the work of investigating smuggling transactions to local governments. After the first year of Kaicheng, the punishment of tea smugglers and gangs was repeatedly increased, and the investigation and seizure of local governments was strengthened, until the middle year of the Dazhong (大中), PeiXiu (裴休) proposed twelve articles on tax tea, and made a comprehensive review of the management of tax tea, and the initial results were achieved.
The rampant tea smuggling trade shows the difficulties faced by the central government in directly managing tax revenues, as well as the difficulties of local governments. In this case, local governments naturally imposed miscellaneous taxes, and the flourishing commercial transactions at that time provided a tax channel, so the central and local governments focused their attention on these goods. In summary, local governments play three roles in the tea trade: tax collectors, arrest smugglers, and participate in smugglers. This indirectly affected the development of three separate financial envoys over the next five generations, merged into a single treasury: the three envoys. The Yantiezhuanyunshi made the gradual abandonment of the management of tax tea and salt in the late Tang Dynasty, and delegated power to the local government one by one, which also marked the failure of the attempt to establish a separate financial system that could be directly taxed, so that the local institutions of the three envoys moved towards the transformation of the Northern Song Dynasty's lu-level (路) transfer envoys.