Raw: [The French Revolution provides insight into the relationship between a government and its citizens and as a reminder that tax policy can have impacts (big and small) that last for centuries.]
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Home • Education • Videos • Taxes and the French Revolution
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Taxes and the French Revolution
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Taxes have impacted much of history, from small details like the width of houses in Amsterdam to key historic events like the French Revolution.
The French Revolution, a major historic event that shifted government and society in 18th century France, had multiple catalysts:
Enlightenment ideals like equality under the law
France’s increasing war debts
The suffering of the peasant class, known as the Third Estate
Since the country’s debt was a factor in the Revolution, so were taxes. The main taxes included:
A land tax on rented farmland
A 5 percent income tax
A property tax
A capitation tax on each member of the family
A mandatory tithe to the church
On top of their existing struggles, the peasants bore much of the burden of these taxes because upper classes shifted their burden through large exemptions based on political favor.
The tax burden on the Third Estate increased again as King Louis XVI continued to raise taxes to pay off the country’s mounting war debt.
The French Revolution provides insight into the relationship between a government and its citizens and as a reminder that tax policy can have impacts (big and small) that last for centuries.
TranscriptThroughout history, tax policies have often led to unintended consequences. Sometimes, they’re comical—like in 16th century Amsterdam.  
When property taxes were levied on the width of one’s house, homeowners built tall, narrow houses to reduce their tax burden.  
Other times, the consequences were more significant, like in the French Revolution.   
There were many factors that led to the Revolution, including Enlightenment ideals like natural rights and equality under the law.  
But did you know that because of France’s mounting debt, taxation also played an important role? 
France was divided into 3 social classes: the Clergy, the Nobles, and the Third Estate (or the commoners).  
The main taxes included a land tax on rented farmland, a 5 percent income tax, a property tax, a capitation tax on each family member, and a mandatory tithe to the church.  
Despite France’s budget deficit, the upper classes used political favor to gain large exemptions, shifting most of the tax burden onto the Third Estate. 
On top of this, the peasants were also suffering from debilitating inflation and food shortages.  
So, when King Louis XVI continued raising taxes to pay off France’s massive war debt, much of the burden fell yet again on the Third Estate. 
All of these forces—the staggering debt, the unjust taxation and suffering of the peasants, and their demand for equality under the law—culminated in a revolution that changed history forever.  
The French Revolution was a complex exploration of the relationship between the government and its citizens. 
And like the narrow homes still standing in Amsterdam, it’s a reminder that getting tax policy right—or wrong—can have consequences that last for centuries.   
GlossaryTaxTax BaseIndividual Income TaxProperty TaxDownloadsDownload Primer: The History of TaxesDownload Primer: The Weird Way Taxes Impact Behavior
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