Raised taxation

What did raised levels of taxation do?

Increased direct taxes and indirect taxes on everyday items such as salt, kerosene and alcohol

Why did raised taxation benefit peasants?

Had to sell more grain to pay taxes- allowed Witte to increase grain support

What did Witte hope to achieve with raised taxations?

Industrial growth would take off and create more wealth for everyone before the squeeze on the workers and peasants hurt too much

Why was raised taxation bad for workers?

Wages were kept low so money could go back into industrial development rather than into wage bills

Why was raised taxation bad for peasants?

Squeezed them very hard in order to pay the interest on loans and protect fledging industry