Question

What was circumstances which first Louis XVI to increase tax

Answer 1

Because the debit on the state had increased too much and the cost of maintaing the palace and the army

Answer 2

Answer:

Here is your answer...

Explaination :

• In 1774, Louis XVI of the Bourbon family of kings ascended the throne of France. Upon his accession the new king found an empty treasury.
• Long years of war had drained the financial resources of France. Added to this was the cost of maintaining an extravagant court at the immense palace of Versailles.
• Under Louis XVI, France helped the thirteen American colonies to gain their independence from the common enemy, Britain. The war added more than a billion livres to a debt that had already risen to more than 2  billion livres.
• Lenders who gave the state credit, now began to charge 10 per cent interest on loans.
• So the French government was obliged to spend an increasing percentage of its budget on interest payments alone.
• To meet its regular expenses, such as the cost of maintaining an army, the court, running government offices or universities, the state was forced to increase taxes.