Uchikura & Co., LLC

Lower Taxes, Bigger Harvest: A Muromachi-Era Lesson Still Relevant Today

 

During Japan’s Muromachi period, Ise Sōzui (later known as Hōjō Sōun) is often remembered not just as a military strategist, but as a practical ruler.

 

At the time, many farmers were forced to give roughly 50–60% of their harvest to local lords. That meant little incentive to expand, improve, or take risks. Why work harder if most of what you produce is taken?

 

Sōzui reportedly reversed that logic.

 

Instead of demanding the majority, he allowed farmers to keep more—around 60%—while reducing the lord’s share. Samurai feared this would weaken revenues.

 

But the opposite happened.

 

When farmers had a real reason to work harder, they expanded cultivation, improved productivity, and increased total output. In the end, a smaller percentage of a much larger harvest could outperform a larger percentage of stagnation.

 

The principle is timeless:

 

If government overtaxes productivity, people lose incentive.
If people are rewarded for effort, they often produce more.

 

Whether in feudal agriculture or modern economics, prosperity usually grows faster when policy encourages expansion rather than punishes success.

 

Taxing work too heavily can shrink the very thing being taxed. Sometimes, giving people more reason to build creates more for everyone.