ed for great fiscal and economic reforms. For this Louis looked to his trusted administrator, John Baptiste Colbert. Louis entrusted to Colbert the administration of finances, industry, commerce, agriculture, colonies, and art. Louis and Colbert believed that the state should govern the economic affairs of the country as well as the political affairs. They also believed that the interests of the ruler were more important than those of individuals. Colbert applied the principals of orderliness to financial administration of the country. He decreased direct taxes paid by the poor and increased direct taxes paid by everyone. Through this careful planning and elimination of graft within the system, Colbert tripled the amount of tax money received. For several years, under his guidance, France enjoyed a balanced budget. Louis' expenditures, however, soon drove the government of France deeper and deeper into debt. War drained the country's resources and created a great need for more money. In 1695 he ordered a head tax on everyone including the nobles. In 1710 he levied a national 10% income tax. Louis XIV imposed taxes on the nobility. This broke a long standing policy that the aristocracy received immunity from ordinary taxes, but Louis' many ambitious projects required huge amounts of money.Louis's economic policies were designed not only to promote economic growth, thus providing more money for the state through taxes, but also to build up the state's power. This dual goal of prosperity and power later became known as mercantilism. Colbert carefully manipulated the prices of France's imports and exports to maintain a favorable balance of trade. This meant that other countries would owe France money, which they would have to pay in silver or gold. Louis improved communications, road and river networks, and built a canal system in order to expand domestic commerce. Colbert simplified a system of tariffs between farms and the rest of Franc...
