Tax Increase

"Grand Duke, educators need to eat too! Have you noticed that ever since Bulgaria gained independence, education funding has never been sufficient? Almost every government has been in arrears, and it just so happens that you paid off the back wages a while ago."

Ferdinand exclaimed, "Truly, a word from you has awakened the dreamer! So, they have set their sights on me."

"However, this is exactly what I intended. It was difficult to intervene in the school before, but now that I am the nominal principal, isn't it simple to exert influence?"

Having figured out the reason, Ferdinand naturally would not continue to refuse. However, Ferdinand also knew that he was just a titular principal and could not devote all his energy to the school. The daily management of the school would still have to be left to others.

"Karl, call Chekhov back and tell him I have agreed," Ferdinand said with a smile.

"Very well, Your Highness!" Karl said, then walked out the door.

In a short while, Chekhov walked in and greeted Ferdinand.

"Alright, for God's sake, I have agreed to take the position of principal. However, the other faculty and staff will have to be handled by your Ministry of Education. Also, ensure the enrollment work for the second half of the year is done well!" Ferdinand said earnestly.

"Very well, Your Highness, our Ministry of Education will definitely do our utmost. I can swear to God!" Chekhov guaranteed.

Ferdinand nodded with satisfaction and said with a smile, "Hmm, tell me about your plan?"

Chekhov pondered for a moment and said, "Grand Duke, you know that this is the first time Bulgaria has established a university, and we lack relevant experience. Our Ministry of Education plans to hire management personnel and some teachers from the Austro-Hungarian Empire and the German Empire!"

Ferdinand pondered for a moment, thinking to himself, It seems the Liberals have a very good impression of the Alliance! Russia's education itself is not great, so it's normal to ignore them; but they didn't even mention Britain or France—this is not a good sign!

Thinking this, Ferdinand was no novice, so he naturally would not say it directly; that would be politically unadvisable.

"Submit your plan to me as soon as possible, along with the division of departments and majors for the University of Bulgaria, as well as the enrollment numbers!" Ferdinand said while looking at Chekhov.

"Very well, Your Highness!" Chekhov said sonorously.

"Hmm, go get busy!" Ferdinand said, watching the high-spirited Chekhov.

"Yes," Chekhov said, then left the palace.

On the other side, in the Sofia government building, things were currently in an uproar. Stambolov shook his head helplessly and slammed the table hard.

He said, "For God's sake, all of you stop arguing! It's all caused by that damn money; even if you shout until the sky falls, you won't be able to conjure up any money!"

Seeing that everyone had quieted down, Stambolov continued, "You all know the fiscal situation of Bulgaria. If we didn't do anything at all, we could achieve a balanced budget, but is that possible?"

"If we don't get things done, what do you need us for? Instead of fighting over the budget here, why don't you think about how to get some money!"

"Perhaps we should consider taking out loans from foreign banks," proposed Minister of Industry Wilson.

"No, bankers are not philanthropists. They will certainly take advantage of our predicament, and the price we pay will likely be high. Besides, with such a large funding gap, what can we use as collateral?" objected Minister of Economy Michael.

"Then let's raise taxes!" proposed Minister of Interior Jonas.

"That is absolutely out of the question! The domestic economy is in a slump, and the capitalists are not having an easy time either!" Stambolov opposed.

He knew very well that the Liberal Party was brought to power by the support of capitalists; raising taxes on them now would be cutting off his own foundation!

"Mr. Prime Minister, I also know the capitalists are not having an easy time. I meant that we could levy taxes on the farmers!" Jonas explained.

"This..." The crowd fell into silence; no one directly objected.

A moment later, Stambolov said, "How about we convene a ministerial meeting to discuss it!"

"Agreed!" everyone said in unison.

Everyone knew that raising taxes was not a pleasant task and that being cursed was inevitable. The peasant class did not have much influence, but although the feudal landlords were weak, they were not exactly pushovers either.

Indeed, one's position determines one's perspective. Facing a fiscal crisis, just like in history, the blade was still turned toward the farmers.

Historically, in order to develop industry, Bulgaria increased the burden on farmers. Land annexation intensified, and a large number of farmers went bankrupt and lost their land, forced to move to the city to make a living.

Separation of families was inevitable, and blood and tears spilled all over Bulgaria. Although a large amount of labor entered the city, driving industrial development, the newly born working class did not benefit from it, working 14 to 16 hours a day while receiving less than half the wages.

This also provided the foundation for the development of communism. Later, the defeat in the World War exacerbated domestic conflicts, eventually triggering the proletarian revolution.

Knowing the cause and effect, Ferdinand naturally had to think twice before acting. Although he urgently needed to develop industry, Ferdinand was still worried that his butterfly effect would trigger adverse consequences, so he finally decided to intervene within limits.

Ferdinand directly vetoed the tax increase bill submitted by the cabinet. He had made up his mind that no matter what, he could not allow a large number of farmers to go bankrupt as they did in history.

"Your Highness, the government is currently in a fiscal crisis; we have no choice but to adopt this desperate measure!" Stambolov said with dissatisfaction.

"I know! But for God's sake, I cannot agree! Do you realize that once this bill is passed, thousands of families will go bankrupt because of it, families will be torn apart, and the cries will drown out all of Bulgaria!" Ferdinand said with righteous indignation.

"No, Your Highness. It is not as bad as you imagine. The farmers' lives will be a bit harder in the coming days, but they must be sacrificed for the development of Bulgaria. Besides, they can go and become workers; it won't be as bad as you say!" Stambolov said angrily.

Ferdinand sneered, "Is that so? Do not treat me like a fool. If we follow the new tax law you have formulated, what follows will be massive land annexation and a large number of bankrupt farmers. Don't tell me Bulgaria can provide that many job openings?"

"When the time comes, a large number of farmers will lose their livelihoods, and then the capitalists can continue to cut wages and let workers work overtime without restraint, right, Stambolov, my Prime Minister?"

"Remember, you are the Prime Minister of Bulgaria, not the Prime Minister of the bourgeoisie! A qualified government must take into account the interests of the majority; otherwise, we will face endless enemies. A group of people on the verge of starvation will use their lives to demand justice from you!"