Reasons for which King Louis XVI concluded to increase taxes:
- In 1774, when Louis XVI ascended the throne of France, he found an empty treasury. Long years of war had drained the financial resources of the country.
- The cost of maintaining an extravagant court at the immense palace of Versailles also drained the resources.
- France, under the leadership of Louis XVI, helped the thirteen American colonies to gain their independence from Britain. The war added more than a billion livres to a debt which had already risen to 2 billion livres.
- Lenders who gave the state credit, now began to charge 10% on loans. So, the French government was obliged to spend an increasing percentage of its budget on interest payments alone.
- So, Louis XVI was forced to increase taxes to meet the nation's regular expenses, such as the cost of maintaining an army, the court, running government offices or universities.
Hope you could get an idea from here.
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