I Became a Witch and Started an Industrial Revolution

【The state must possess sources of income beyond taxation, and the more substantial the better.】

【The wealthier the state becomes, the lower the tax burden it can impose on private enterprises, ensuring competitiveness remains at a qualified level at all times.】

These two points were the core of Seris’ upcoming industrial transformation.

The production means and technology, such as everything within the light industry sector, were decentralized, encouraging civilians to engage in commerce.

Existing civilian factories sold finished goods to the people at preferential prices, leaving them to find their own sales channels.

Once some people made money, they could purchase machinery from the factories to establish their own workshops, or form trade caravans to buy in bulk and resell.

Commercial Tax Law Reform

For special enterprises and special goods, the tax standard started at 25%.

Progressive business tax for private enterprises was reduced to a maximum rate of 15%, while the top personal income tax was set at 10%.

Mitia’s list of special enterprises was not long, mostly covering essential livelihoods and luxury goods.

Items like tobacco and alcohol were essentially the nation’s money pouch.

Private enterprises and personal income combined had a capped maximum of 25%.

This threshold was extremely difficult to reach.

For instance, the largest registered private enterprise in Seris paid roughly 8% in corporate tax, while its owner paid 3% in personal tax.

In the foreseeable future, the majority of individuals would pay less than 5% in taxes, or even enjoy tax exemption.

Lower tax rates would stimulate entrepreneurial activity among the people, but the shortfall in tax revenue had to be compensated by another method.

That method was for the state to act as venture capital or angel investor, channeling funds into private enterprises for profit.

This required the establishment of institutions such as state-owned banks, as well as an entirely new monetary system.

From this point, most of the meetings became Mitia’s stage.

She issued directives, explained them, and answered questions, while the upper and lower chambers of parliament were responsible for passing the proposals.

For the new monetary system, Mitia melted down the gold and silver coins obtained from previous foreign trade, as well as large amounts of resold jewelry and luxury items, creating a massive reserve of gold.

Beside the Empress’ Palace under construction in the capital, the foundation of a deep vault began, which would later be built into the headquarters of the first Federal Central Bank.

The vault stored the reserves.

With it as the anchor, the first series of federal banknotes would be studied and printed.

Citizens could exchange any existing currency for the paper notes, and could always redeem the notes back into reserves at the national bank.

A unified and convenient paper currency would circulate faster, be lighter to carry and store, and indirectly promote the prosperity of trade.

Externally, however, it was not as simple.

It was directly announced that all purchases of Seris’ goods had to be made in Seris’ currency, forcibly binding national commerce with its currency.

By now, most surrounding nations had already introduced steam engines, cotton textiles, and other basic commodities, and some had even purchased Seris’ muskets and cannons.

After the monetary reform, they would first need to purchase Seris’ currency before they could acquire goods from Seris.

In practical terms, Seris would seize the initiative in regional finance, thereby indirectly controlling the allocation of resources.

As for heavy industry and national defense, there was little to say—things proceeded step by step.

It was not that Mitia neglected heavy industry, but rather that it no longer required her forceful intervention.

What she needed to do was guide the people so that they would become the main driving force.

As long as commerce and industry developed healthily and competitively, the subdivided fields required by heavy industry would gradually be filled, and breakthroughs would come naturally.

Light and heavy industries were never separate.

If separated, one side would inevitably be stunted, and neither would prosper.

After the main session ended, Mitia continued to receive various representatives, listening to their demands and opinions, patiently explaining anything they did not understand.

People in different positions had different needs.

Broad policies would inevitably benefit some while neglecting others.

This was entirely normal, which was why listening to diverse representatives was so important.

At lunchtime, Mitia met with representatives of the workers.

Led in by the Party Guard, two young men in work overalls entered the dining hall with lowered heads, looking uneasy as they stood before Mitia, ready to kneel in salute.

Mitia waved her hand: “There is no need for such formality.”

“You haven’t had lunch yet, have you? Come, sit down, eat and talk.”

Her female aide quickly called the kitchen, which brought out two identical meals—white bread, a meat patty, and a glass of wine.

The two young men exchanged a glance, then looked at Mitia, before carefully picking up knife and fork and beginning to eat.

Seeing this, Mitia smiled, and began to chat casually with them.

At first it was stiff, question and answer, but with Mitia’s purple eyes always carrying a gentle smile, they gradually relaxed and began speaking more.

Mitia learned their names.

The fairer-skinned one was called Haji, and the taller, yellow-skinned one was Grace.

From their mannerisms, Mitia could tell that Grace, the taller one, was introverted and quiet, while Haji seemed sharp and lively.

As she listened, Mitia set down her fork, sipping her wine casually.

In truth, she was not used to such food, but she had to admit it was simple, quick, and filling.

From their words, Mitia gathered that they were overall very satisfied with life now, but had run into trouble with technical training.

Because there were too few senior craftsmen, schedules were packed.

And technical skills could not be absorbed in a short time, so every class’s progress was very slow.

Many young people without training had no way to take exams for promotion, and so their wages remained stagnant.

Mitia was aware of this problem, but talent cultivation was inherently long-term.

She had no immediate solution, so she simply explained the current difficulties and told them she would think of ways later.

At this point, the silent Grace suddenly raised his head, stammering: “Your Majesty the Empress... I have developed a new kind of musket on my own. May I have the honor of showing it to you?”

“Oh?”

His words instantly piqued Mitia’s interest.

A self-made firearm, whether useful or not, marked him as a gifted talent.

Mitia nodded: “Of course. Did you bring it?”

Grace flushed, embarrassed: “No...”

He had no idea why he suddenly blurted it out, when he had not even prepared.

“It’s fine, I’ll arrange for someone to fetch it for you.”

She gave a signal, and the matter was arranged.

The three continued their lunch.

“Afterward, let’s go to the shooting range and test your invention, Grace.”

When a box was delivered to Grace, Mitia stood up and approached them, saying:

Over the years, Mitia had grown into her full height, now nearly 1.75 meters tall.

Wearing long boots, she was half a head taller than Grace himself.

Though the snow had just melted with the arrival of spring, the weather remained bitterly cold.

Her aide thoughtfully draped a fur coat over her shoulders, and the three of them walked toward the indoor range.

Grace set the box down, opened it, and pulled out what looked like a black iron rod, explaining excitedly to Mitia:

“Your Majesty, I work in the firearm assembly testing workshop of the Bata United Arms Factory. I have handled a great many heavy machine gun trials.”

“One time I became curious about the principle of the connecting rod mechanism in machine guns. I observed and studied it for a while, and even asked my master.”

“He told me that the purpose of the connecting rod was to block the propellant gases, preventing them from escaping backward and wasting energy, while maximizing the use of gas power.”

“But then I wondered—why must it be sealed completely? Couldn’t the backward gas be used for another purpose?”

“For example, using the pressure of the gas to brake? Then storing energy in a spring to push it forward again, thus creating reciprocating motion?”

Mitia’s eyes lit up.

【A blowback mechanism?】

She took the iron rod-like firearm from Grace and examined it closely.

It had all the components a gun should have, though crude from handcrafting.

Yet its structure gave Mitia an odd sense of familiarity.

When she returned it to Grace and he inserted a side-mounted magazine to prepare for testing, Mitia suddenly realized what it resembled.

【The Sten!】