Dear student, â— On the night of 4 August 1789, the Assembly passed a decree abolishing the feudal system of obligations and taxes. The steps that were taken by the Assembly to reduce the power of the first and second estate were: -â—‹ First estate members i.e. clergy were forced to give up their privileges. -â—‹ Second estates feudal privileges of extracting tithes from peasants were abolished and lands owned by the Church were confiscated.