Abstract:
The article deals with the consequences of a political agreement between King Ferdinand I and a part of the Bohemian opposition nobility, concluded in 1547 in order to restore stability following the Schmalkaldic War (1546–1547). The change in the tax system put Bohemian royal cities and owners of large estates at a considerable disadvantage while profits from manor farming and financial services remained virtually untaxed. This tax structure, applied for several decades, resulted in a rapid increase of debts and the ultimate collapse of the entire tax system in 1615. The resulting financial crisis was resolved by the Bohemian Landtag in 1615 by declaring bankruptcy of the treasury and taking over tax collection.
