Millones facts for kids

The millones were a special kind of indirect tax in Spain during the 1500s and 1600s. This tax was mainly on food items.

It was first started by King Philip II. The Spanish parliament, called the Cortes de Castilla, approved this tax on April 4, 1590.

Why the Millones Tax Started

The millones tax was first meant to be a temporary way to get money. Spain needed money because its big navy, the Spanish Armada, had been lost when it tried to attack England.

The Cortes of Castille agreed to this tax in 1590. They approved it for six years, hoping to collect 8 million ducats. A ducat was a type of gold coin used back then.

What Was Taxed?

At first, the millones tax was put on four main food items. These were:

• Wine
• Meat
• Olive oil
• Vinegar

These were called the "cuatro especies," meaning "four kinds."

How the Tax Changed Over Time

The tax was supposed to be temporary, but it kept getting renewed by the Cortes. It was also used by the kings who came after Philip II, including Philip III, Philip IV, and Charles II.

Changes Under Philip III

When Philip III was king, the tax brought in about 3 million ducats each year. But later, this amount dropped to 2 million ducats a year. This happened because Spain's population got smaller, and the economy was not doing well.

More Items Get Taxed

In 1626, King Philip IV and his Cortes decided to double the tax. They wanted to collect 4 million ducats instead of 2 million. To do this, they added more items to the tax list. These new items included:

• Salt
• Paper
• Fees for ships docking in ports

Later, in 1632, the tax was increased even more. It brought in an extra 2.5 million ducats a year. This was because even more goods were taxed, such as:

• Chocolate
• Sugar
• Fish
• Tobacco
• Other everyday products

Automatic Renewal

From 1655 onwards, renewing the millones tax became almost automatic. It was no longer a big debate. After 1668, the king didn't even need to call the full Cortes together to renew it. A smaller group, called the Junta de asistentes, would approve it instead.

Impact of the Millones Tax

The millones tax system was very complicated. Later, it was made a bit simpler by adding something called cientos. These were like extra charges added to another sales tax called the alcabala.

This tax made life harder for many people in Castile during the 1600s. It increased the prices of basic goods like food. This meant that everyday items became more expensive for everyone.

Unlike direct taxes, which might only affect certain groups, the millones tax affected both the nobility (rich people) and the common people. However, because it was a tax on basic food, it was very unfair to the poor. This is called a regressive tax, meaning it takes a larger percentage of income from poorer people than from richer people.

See also

In Spanish: Millones para niños