Regressive Taxation

Regressive taxation during the French Revolution refers to the inequitable tax system that disproportionately affected the poorer segments of society. Before the revolution, the French taxation system was deeply skewed, placing heavier burdens on the peasantry and commoners while the nobility and clergy (First and Second Estates, respectively) enjoyed numerous exemptions and privileges. 

The primary direct tax was the taille, which was based on land ownership and was paid predominantly by peasants (Third Estate). The nobility, often large landowners, were exempt from this tax. Additionally, the gabelle (a tax on salt) and the corvée (forced labor on public works) placed further strain on the common people. Indirect taxes, such as the aides (taxes on goods) and the octroi (local tariffs on goods brought into towns), also disproportionately impacted the lower classes, who spent a larger portion of their income on consumables.

The clergy was responsible for the "don gratuit" (voluntary contribution to the crown), which was significantly lower than what would have been paid under regular taxation. Consequently, the church paid very little compared to its wealth and landholdings. Moreover, the nobility enjoyed privileges such as having military or honorable jobs instead of monetary contributions and were allowed to levy dues from peasants working their land.

The inequity of this tax system played a critical role in exacerbating social tensions. The heavy tax burden on the Third Estate coincided with poor economic conditions, including series of poor harvests in the 1780s, leading to widespread food scarcity and increased prices. This combination of economic hardship and unfair taxation was one of the factors leading to the convening of the Estates-General in 1789, where the Third Estate demanded tax reforms and greater equality.

Efforts to reform taxation, such as those undertaken by finance ministers like Jacques Necker and Charles Alexandre de Calonne, tried to introduce more egalitarian policies (such as broad-based land taxes affecting all estates). However, opposition from privileged classes, particularly the Assembly of Notables, prevented significant changes, contributing to the revolutionary fervor that eventually led to the dismantling of the old taxation regime and the birth of a new fiscal system aimed at greater fairness.

• Regressive taxation systems primarily burden the lower income classes more than the wealthy, a concept that became a topic of heated debate during the French Revolution as the common people (the Third Estate) sought greater equity in taxation.
• Before the Revolution, the nobility and clergy enjoyed significant tax exemptions, contributing to the widespread discontent among the Third Estate, who paid a disproportionate share (over 50%) of their income in taxes.
• The French government's reliance on regressive taxation exacerbated the financial crisis of the 1780s, as the monarchy struggled to fund its operations while the common people faced rising bread prices and stagnant wages.
• As French revolutionaries moved towards a new fiscal policy, they proposed progressive taxation instead, aiming to ensure that the wealthiest paid their fair share to support the new republic, a radical shift from the previous system.
• Taxation was one of the key grievances that ignited the revolution, illustrated poignantly by the storming of the Bastille; it was not merely about personal liberties, but also about an equitable distribution of the tax burden among all classes.