Land Tax Reforms and Peasant Revolts: Evidence from Imperial Qing China

Abstract

Fiscal capacity and tax systems are crucial for social stability. This paper examines the effects of "Tan Ding Ru Mu" reform, which eliminated the historically regressive poll tax and introduced a more progressive land tax, on social conflicts. Aiming at reducing monitoring costs and streamlining tax collection, the reform was an exogenous shock as it followed immediately after Emperor Yongzheng’s unexpected ascension to the throne in 1723. By comparing changes in peasant revolts in counties more exposed to the reform with those less exposed, before and after, we find that more progressive land tax reform increases social conflicts. We find suggestive evidence that the rise in conflicts is attributed to the increased tax incidence on tenants and the emergence of large landowners displacing small-to-medium landowners.