The Annals of the Flame kingdom (LN) Chapter 2 Part9

「Is there a problem with my hearing? Did I just hear someone say, 『stop collecting taxes』? 」

Erica rubbed her temples and glared at Kouta. Kouta ignored her gaze and sized up the mountain of valuables stacked up on top of one another in the room. He murmured, 「This is quite a challenge'.

「… … Kouta? 」

「Ah, sorry. To be honest, I have only scored a 『2』 in my arts exams, so I have no idea what's good about these paintings. At the very least, I know that they are worth quite a sum of money. 」

「Your knowledge about arts is not important.  Can you please explain? You just said, 『stop collecting taxes』, right? 」

「Yes. 」

Kouta answered nonchalantly as if nothing was wrong. Seeing this, Erica sighed.

「… … Kouta. Do you understand what you just said? If we stop collecting taxes, how will we be able to live? Do you want us to starve ourselves? 」

「I have no intention of doing that. 」

「Then-」

Kouta raised his hand and interrupted Erica's question. She was upset for being interrupted but decided to let Kouta continue.

「It seems that way of wording it isn't so good. What I meant by 『stop collecting taxes』 is 『stop collecting taxes using the method of calculating by number of individuals』. 」

「… … Sorry, I don't quite understand what you mean. 」

Kouta looked at Erica, who had a question mark floating above her head, and raised two fingers.

「There are two kinds of taxes. Of course, I don't mean their 『names』. I meant the method of collecting taxes. 」

「Not the name but the collection method? Please go on. 」

「Up till now, the amount of taxes collected from the people living here is equal. However, it is that 『equality』 that is the problem… …」

He counted down with his fingers.

「Absolute equality and true equality. 」

The former is 「equality for all no matter the individual」, while the latter is 「equality based on an individual's abilities and responsibilities」.

Let's take sales tax as an example. This type of tax that is paid when exchanging money for goods or services must be paid in the same amount by everybody, no matter if it's a worldwide multi-millionaire celebrity or a homeless beggar sleeping in the streets. Some might argue that since their spending power is largely different, this can be regarded as true equality.  However, from the perspective of 「everyone pays the same amount」, sales tax can also be regarded as an absolute equality. On the other hand, true equality is largely different from absolute equality - 「the burden of each individual is dependent on the individual's ability」. In other words, the rich pay more taxes, the poor pay less.

「Currently, the taxes in Rarkia are based on absolute equality. Of course, not only Rarkia but other places too. 」

「Of course. This form of tax is used in every territory. Isn't it fairer? 」

「At first glance this form of tax seems fairer, but it also has its share of problems. Think about this, even the people in poverty must pay the same amount of tax as everyone else. For the richer people, this isn't an issue. However, for the poorer people, this is a ma.s.sive headache for them. 」

「So what you're saying is that the 『true equality』 method is better? 」

「There's more to the argument… … Let's use an example then, Miss Erica. Imagine that a Chamber od Commerce wants to set up business in Rarkia. If the yearly tax is 2 thousand platinum coins, then they would have to earn at least 2 thousand platinum coins in order to get any profit, correct? 」

「Yes. 」

「This sort of thing… … Is it possible? Is it possible to earn at least 2 thousand platinum coins by setting up business here? 」

Erica turned her head to the side.

「… … Am I correct? 」

「It… … is impossible. 」

「Even while ignoring profit, earning 2 thousand platinum coins is pretty much impossible. If we switch the tax rates, this problem will be solved. Plus, if we collect taxes based on how much they're earning, we are able to collect more from those who are more successful and earning more money, while collecting less from those who aren't. 」

「Eh? Then, this method-」

Erica found a slight problem in Kouta's plan.

「-Wait a second. Isn't this strange? 」

「What is? 」

「If we used your method of collecting taxes, won't the people earning more money have to pay more taxes? If that's the case, wouldn't they be at a disadvantage? They worked hard to earn more money, but because of that they have to pay more taxes? Wouldn't they rather not work then? 」

A question mark appeared above Erica's head as she c.o.c.ked it to the side quizzically. Under her gaze, Kouta closed his eyes, raised his hands, and applauded.

「W-why did you start clapping? 」

「Wow, good job. You actually managed to notice this. 」

「… … Are you looking down on me? Plus, isn't this rather obvious? 」

「No, quite the opposite. What Miss Erica just noticed is a phenomenon called 『low labour incentive』. The meaning is quite literal- because they can't escape taxes no matter how much they work, some people will feel like they'd rather not work instead. 」

In j.a.pan, the tax system being used is a progressive tax system, where those who earn more pay more taxes. In summary, it is a system where even if a person were to increase their workload by tenfold, the amount of taxes they must pay also increases by tenfold. In the eyes of salarymen, this isn't anything positive, because what they earn has decreased.  This will cause people to not be incentivized to work, of course, not to the extent of becoming a second Is.h.i.+kawa Takuboku.

「Right? Then? Is there a way to solve this problem? 」

「No. 」

「Good. Then let's- Eh? No? Really? There really isn't any? 」

「There is no such thing. There are many inherent problems about taxes. Someone once said, 『if one is able to solve the problems of taxes, then there wouldn't be a need for economics』. Both tax systems are equally flawed. However, if we want to encourage the people to set up businesses, we must decrease their fixed expenses first. If we use the current system, it would not be different from starting a business with a 2 thousand platinum coin deficit. If we were to remove that large deficit, wouldn't it become easier for them to start setting up a business? What do you think? 」

Kouta looked at Erica.

「… You have a point. That's not a bad idea. 」

Erica nodded her head. She now understood the part about tax collection methods. Through Kouta's explanation, it is quite clear that this is a step forward they could take. However-

「However, it's impossible. 」

She shook her head. Kouta furrowed his brows at her reply.

「May I ask the reason behind that decision? 」

「This place is Terra, though? Not only isn't there any special produce, the population here is also quite small, not to mention the distance from the royal capital is quite far. If it were me, I would not open a branch of my business here… … At this unattractive place. It would be the same no matter how cheap the taxes are. 」

Erica's words are the cold hard truth. At the countryside with low spending power located so far away from commercial areas, there won't be many people who would be willing to set up their businesses here, no matter how cheap the taxes are. This is also the reason why the land in Marunouchi is so expensive while the land in Hokkaido is so cheap. This is the undeniable truth.

「That is indeed true. Then let's start by gathering a crowd then. 」

「Wait a minute. Gathering a crowd… … You, how easy do you think it is? 」

「You mentioned it just now, didn't you, Miss Erica? That this place is 『unattractive』. Then we just simply have to make this place into an 『attractive』 one. 」

「… … That's the problem. You are simplifying things way too much. How is it possible to create attractiveness of Terra? 」

Erica glared at Kouta, contempt and disappointment evident in her eyes. The more someone hopes for something, the greater the disappointment in the end.

「Creating attractiveness? 」

Kouta returned Erica's gaze with a relaxed manner and c.o.c.ked his head to the side.

「Attractiveness isn't something that can be created, right? I am not a magician that can produce something out of thin air. 」

「Eh? Didn't you say that you will create a miracle? 」

「I apologise. I am not a conjurer, but a banker. So- 」

If I can't create attractiveness, I will simply have to obtain it from somewhere else.

「Then where? Where can we get it from? 」

「Do allow me to stray from our topic, Miss Erica. In this country, how big is the influence of the monarch? 」

「How big, you say… … Since it's the 『monarch』, it's natural the monarch would have the most influence in the country- '

Erica stopped.

「Then let her say this: 『It seems that Terra is planning something interesting. I am looking forward to it』. 」

「To be honest, I don't quite understand the internal workings of this country, but getting the monarch's blessing would normally only have positive effects, right? No negative effects? 」

「… … Yes. Spot on, Kouta. 」

「Then… … Can't this be turned into the 『attractiveness』 you mentioned? 」

By doing business in Terra, one can please Liz. Just by opening a shop, one can please the person holding the highest authority in the Flame. If one is able to gain the favour of the person in power, countless forms of benefits can be antic.i.p.ated. It is because of this line of thought that the act of bribery will never truly disappear.

「Furthermore, we should also give out some projects to those who decide to set up businesses in Terra to undertake. Allow them to have some 『accomplishments』. One or two is sufficient. The rest will follow after them. 」

「Is that it? Are things that simple? 」

「In my opinion, there is a high chance it will succeed. Because, while earning the favour of superiors is important, not getting on the wrong side of them is equally so. 」

This is a place that has garnered the Queen's 'interest'. If every other compet.i.tor has set up shop at Terra, what would Her Highness think of the one who hasn't? Some would even attempt to use 'have they ever put themselves in our shoes? 」 as an excuse.

「… … If that's the case… …」

Erica put her hand under her chin and pondered for a while. Kouta's words were not wrong, but even so-

「Impossible. 」

「Please tell me the reason. 」

「Her Highness has no reason to help Terra. 」

「Even if we use 『Miss Erica is Her Highness' elder sister』? 」

「He is not someone who shows favouritism. 」
(T/N Erica was using a gender-neutral noun, which Kouta interpreted as a 'she'.)

「You mean Her Highness? 」

「I don't plan on insulting her but… … When it comes to family matters, she becomes as meek as a lamb and listens to whatever I say like an idiot. I meant Lotte. 」

Kouta recalled Lotte's kind and friendly face. It seems that Lotte is indeed quite capable in his field after all.

「If we allow gambling here and make it a public secret, perhaps Lotte might turn a blind eye. However, allowing a select few businesses to gain unfair advantages over the others is something he will not overlook. 」

「Is it because he hates bribery? He is a politician, though? 」

「Those two short lines totally give away your impression of 『politicians』. However, Lotte's family has a mercantile background, and is very rich.  It sounds a bit weird in hindsight, but it is because of how Lotte rejects favouritism that the country is able to operate in such a 『clean』 way. 」

「Then shouldn't it be fine if we also let Lotte have something to gain from this? 」

「Let him have something to gain? 」

「Yes. In short, playing a card that would make even Lotte say, 『I understand, there's no harm in giving Terra some benefits』. Am I wrong? 」

「This… … You're right. If we are able to play such a card, he might actually say that… …」

But we don't have such a card.

Erica shrugged, imitating Kouta.

「Miss Erica. Miss Erica. 」

「What is it? 」

「Who is it that stands before you? 」

「Who? … … Isn't that just you, Kouta? 」

Kouta nodded.

「That is correct. Then, do we not have that 『card』 in our hands at this moment? 」

Kouta pointed to himself while smiling. Erica's train of thought stopped.

「… … Do you think that Mr. Lotte will regret not making me stay? 」

A chill ran down Erica's back.

「N-no way! Impossible! 」

After a few seconds, Erica broke out of her stupor and shouted reflexively.

「Mr. Lotte once said this to me, 『You might bring unnecessary trouble to us, so please leave the capital』. In other words, to Mr. Lotte… … no, to the entire Fame Kingdom, I am a troublesome 『weak point』. And currently, this 『weak point』 is here… … Next to Miss Erica. If there's something useful that can be used, there is no reason not to capitalize on it. Anyhow, Miss Erica doesn't have the liberty to choose anymore. Beggars can't be choosers, after all. 」

「Impossible. I can't do this! I may not have a choice in this matter, but please show some restraint! Listen well! Liz entrusted you to me because she trusts me. What you are telling me to do is no different from betraying her-」

「This type of reliance, just discard it. 」

「D-discard! I would never do such a thing! P-plus… … T-this… … T-this sort of action is equal to treason! How can I do such a thing! 」

「Treason? 」

「Yes! Because, Kouta, what you have said is threatening the Flame Kingdom! 」

「Threatening is such an ugly word. I prefer the phrase 『making a deal』. 」

「This is not about the appropriate usage of words! In reality-」

「In reality, the development of Terra can also bring wealth to Flame. You said it yourself too, didn't you? That you pay back old debts by making new ones. Debts are also considered liabilities. Most importantly, Miss Erica, you are the elder sister of Her Highness. Normally, it is almost impossible for someone to simply tell the strongest person in the country 『lend me some money』. In this case where it is the monarch's beloved family member who's asking, it might be easier. 」

Erica bit her lip. To be honest, the country had never requested Erica to repay her debts. She understood clearly, that the reason why they didn't do so was because 'Erica was the Queen's elder sister'… … And she used this to her advantage.

「Our first step is to liquify our fixed a.s.sets, transforming long term loan a.s.sets into usable money. The benefits of doing so… … while we're still currently making the decision to sell off our non-essential a.s.sets, do you need me to explain more about it? 」

「… … But… … Right! Her highness… … Liz-! 」

Erica vehemently tried to reject it. Kouta only shrugged his shoulders towards Erica who tried to find an excuse.

「- If that's the case, then give up. 」

「How could I possibly… … Eh? 」

「As I said, give it up. If Miss Erica is not willing to do it, then there is no point in forcing it. 」

「… … R-really? 」

「Yes. If an entrepreneur… … a lord is not willing to do something no matter what, there is no benefit in forcing anything, since doing so would not solve any problems. 」

「Is it really ok to do so? 」

「You didn't want to do it, right? 」

「T-that… … That's right. B-but… … If there's some other way, maybe-」

「』Some other way』? 」

Kouta's gaze suddenly turned cold.

「In order to minimize any misunderstanding, Miss Erica, allow me to say it again. I am not a G.o.d, not a Buddha, and not 『a hero summoned from another world』. I am a banker. A normal banker cannot make miracles appear out of thin air. 」

Kouta shrugged his shoulders while still looking at Erica with a cold glare.

「Of course, I am not saying that this is a perfect method. Who knows, perhaps there is an even better method out there. Perhaps there is a method that won't harm anyone, that won't make anyone sad, that won't cause anyone pain, that won't cause anyone to receive losses. Alas, I am but a human. I cannot think of a method that benefits everybody however, I will give my best and do what I can do. 」

「Ah… … '

「Correct. This method may anger many people. Apart from Mr. Lotte, other lords from other territories will also not be happy. If you want to live your lives happily, then realistically, there is nothing you can do. Nevertheless, why did Miss Erica say things such as 『I want to make Terra better』? From my point of view, I originally thought that Miss Erica will face whatever criticism that comes at you head on, no matter how hard it becomes, just to make Terra better. 」

「… … Hmm, I have talked for too long. In short-」

Do you not even have this level of 『awareness』?

「… …If that really is the case, please do not even mutter the words 『I want to make Terra better』 from now on onwards. To be frank, these words may not be nice on the ears. In the past, all of the businessmen that I have helped have suffered many losses, have endured countless hards.h.i.+ps… … and have undergone various reforms with perseverance and resolve, no matter how tough the road ahead became. If you can't even do that, then forget everything that I have just said. I'm sorry but please do allow me to accept your offer of a life with three meals and an afternoon nap. 」

「… … You sure are brave, aren't you? 」

Erica saw red.

She had faced many many many problems and hards.h.i.+ps, but even so, she still wished for her territory to become better, and had worked hard till this day. In the end, when there were no results, perhaps all she had done was in vain, perhaps all she had done was foolish, perhaps it was all useless. Perhaps all of those were true, however-

「- I, have never been told such things by someone else with a smile you know? 」

「Then, do you wish to kill me? Silencing me right now is an option though? 」

Seeing Kouta's indifferent reaction, Erica let out an 'impossible' from her mouth.

「… … Kouta, you have asked me this before: 『as the elder sister of the monarch, why were you given this territiory』. 」

「That is true. 」

「The answer is very simple. It is because I am the child of a concubine… … Ah. Don't be mistaken. Although I am the child of a concubine, Her Highness Queen Angelica has never treated me badly. Everyone loved me and cared for me, especially Her Highness Queen Angelica… …」
(T/N I have no idea about how to address royals. If you have any suggestions, please do tell me.)

Erica lightly touched the border of her hat.

「This territory was given to me, Erica Aurenfert Fan Flame, by my father! So-」

Her right hand that was caressing her hat, grabbed it by the rim. The images of Angelica and George flashed for a brief moment in her mind.

「- I will cooperate. Kouta, we shall use that 『trump card』. 」

「Have you made up your mind? 」

「An entrepreneur has to have 『an undying will that burns like a raging flame』, right? No matter what I have to do, my will to revitalise Terra will not disappear. 」

「Good. Since you showed that expression, then perhaps there is worth in me helping. However, I will wholeheartedly work towards the transforming Terra. Miss Erica, since you have made up your mind about revitalizing Terra, then I won't hold back. If you are displeased about this-」

「You were thinking of saying, 『then please stop me from giving advice』, right? But I did mention this before? I will not go back on my words. 」

「What? 」

「But from my point of view, didn't you turn back on your words just now? Who was the one that described themselves as 『excited』? 」

「T-that… … Umm… … T-that- I was shocked, that's all! 」

Seeing her fl.u.s.tered form, Kouta smiled.

「Haha. I understand, then that is what happened. 」

「Hmm? … …Sigh, fine then. 」

Erica sighed, then slightly gazed up at Kouta.

「Just now, you said that you were a 『weak point』, didn't you? Umm… … What did you mean by that? 」

Erica asked with a puzzled expression.

「What do you mean? 」

「If I were Lotte, I would naturally remove 『weak points』. Since you were a weak point, he would, without a doubt, try to remove any weak points present in Flame… … And that weak point includes you, Kouta. 」

「About that… … that is indeed a possibility. 」

「What? Are you not afraid of death? 」

「That's impossible. I am but an ordinary person. I am still young and have hopes of living long. However, what Mr. Lotte is afraid of is actually 『rumours』. He is afraid that the news of 『the Flame Kingdom has summoned a hero』 to be leaked. Even if he kills me, if he can't sweep the matter of 『hero』 under the rug, it is useless. 」

「Is that so? 」

「It's because he is afraid of other countries waging war on Flame. Anything can be made into an excuse to trigger war. 」

「Although this may sound a bit baseless', Kouta added

「So, there is no need for you to be worried about me. If you are still worried about me… … Hmm, then let's just say that it was Miss Erica that came up with this idea. 」

「Can this fool Lotte? 」

「At least it's better than doing nothing, isn't it? 」

Kouta shrugged and Erica smiled lightly in response.

「… … I have a question. 」

A question appeared in her mind. Erica stared at Kouta's eyes but the eyes she was staring at stared back at her unwaveringly, as if they were fake. Blue eyes as bright as the sky met with Kouta's dark eyes.

「Why… … Why are you willing to do so much for me? 」

「I did say so before, didn't I? That people like me like being depended upon. 」

「But there should still be an upper limit to that, right? Just by agreeing to stay here, a life of good food, good clothing and a comfortable place to stay is a.s.sured. Although they may not fully satisfy all your needs, but they should at least make your life easier? Are you really satisfied with just 3 meals a day and an afternoon nap?

「What you are planning to do might even shorten your life. Of course, I will do my best, but we cannot  say with absolute certainty that your safety will be a.s.sured. 」

「Even though you are the Queen's elder sister? 」

「Exactly because I am the Queen's elder sister. 」

I have to uphold my obligations as a member of the royal family of Flame, she added.

「Although from my perspective as the lord of Terra, your proposal is very tempting, but from the perspective of the country, that is something very dangerous. If Lotte gets wind of this, I may even be forced to execute you myself. 」

「You are quite frank, aren't you? It wouldn't hurt to sugarcoat it a bit. 」

「I am not the type of person who hides their hand from those that have revealed theirs. 」

「That doesn't sound like words coming from a royal. Do you hate acting? 」

「Do not jest. 」

Erica glared back with a serious gaze. Kouta sighed.

「It's payment, Miss Erica. 」

「For 3 meals a day and an afternoon nap? 」

「Although this form of payment may be a bit excessive… … I have never once considered saying, 『to me, the smiles of my customers are the best form of payment』. On the contrary, I would prefer money or services as payment for my services. Of course, hearing someone say, 『thank you』 to me does bring me joy, and without a doubt it can also be a type of 『payment』. If the other party is serious in changing their ways for the better, making plans, changing policies and working hard… … Similar to a sincere smile, it can also be a form of 『payment』. Naturally, if that's the case, I will also do my part to the fullest. 」

「Even if you have to risk your own life? 」

「The reason is quite complicated. 」

「It is fine. Continue. 」

「I have said that an entrepreneur has to have an undying will. That is also true for us bankers. If one does not respond with the same level of willpower, he would easily be swallowed up. Seeing the lord of this place working hard to improve it, there is no excuse for me to be slacking, is there? 」

Saying that, Kouta smiled. Erica sighed.

「So complicated indeed… … However, I don't hate this kind of stupidity.

Her originally sarcastic snicker turned into a bright smile.

「- Then, what should I do? 」

「Two things. The first is what I had mentioned before, to attract various businesses to open a branch here in Terra. In essence, we have to try and sell this idea of ours. 」

「You mean, to convince Lotte? 」

「I will leave that to you. You can even have Liz help you on this. 」

「Eh?… '

「I think we can omit the part about Liz, since she'll leave the decision to Lotte anyways. 」

「… … She is the person with the most power here, right? 」

「I never mentioned her being the one that makes decisions on behalf of the country, though? 」

「Perhaps being the sister of the Queen brings less restrictions,' Erica said while shrugging. Kouta thought of the exchange he had while he was at the royal palace. Makes sense, he thought.

「I will see what I can do about that. Then? What's the second thing? 」

「If we want to attract other businesses to Terra, we would need buildings and facilities that they can use to set up shop. Since we already have a harbor here, taking into account of future developments in Terra, I would like businesses to be centralized near the coast… … Yes, I want to establish a commercial hub. 」

「The coast? There are people living there though? 」

「Of course, we will have to relocate them. However, you can also directly order them to leave… …」

「… … I will not bear to do something like that. Saying that, you'll probably say that I am too naïve, won't you? 」

「I won't say something like that, because doing something like forcing them out will cause even more problems in the future. Although some may still be a bit reluctant to leave, giving some form of compensation is still better than nothing. Thinking about the costs of buying the land from the people, the costs of building new buildings and other costs, perhaps we won't have enough money even after we sell all our things. 」

「… … I understand. 」

「Then, please explain. 」

「You want me to borrow the money from the national treasury, right? 」

Seeing Erica's reluctant expression, Kouta couldn't stop a slight smile from being shown on his face.

「If you don't want to, you can give up, you know? 」

「… … I will not give up. I was only slightly reluctant about it. Pay it no heed. 」

Seeing Erica's pouting expression, Kouta couldn't stop himself from laughing out loud.

「Stop that! Don't laugh! 」

「S-sorry. I couldn't help it… … Hahaha… …」

「… … About the plan of buying the land near the coast, I will a.s.sign Emily to help you. Emily, please help Kouta. You know the area well and are able to converse with the locals easily. Please-」

「Don't cause any troubles, right? 」

「Please don't overdo yourself, and please take the future of Terra into consideration before you do anything. 」

「… … It will not be easy following that command… …」

The maid glanced at Kouta.

「… … But I will do my best to a.s.sist Mr. Kouta. 」

「… … Please get along, you two. 」

Erica sighed helplessly.

「… … Then, pleased to work with you, Kouta. 」

She stretched her right hand out while smiling.

「Same here. Pleased to work with you. 」

Her outstretched right hand shook with Kouta's outstretched right hand.