W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
The isle of Rhodes: a gateway to Rome and Greece. All shipped goods from the east stopped for supplies or to transfer cargo at Rhodes. The port of the island, similar to all other harbors, had a tax on all goods, which was 2%. Rhodes prospered and flourished, in the banking and commerce industry specifically. The businessmen erected a 100-foot-tall bronze colossus of Apollo at the entrance to the port. It named as one of the 7 wonders of the ancient world (whether it actually straddled the harbor entrance remains a mystery). If you’re feeling the pressure with today’s taxes, call a Cary NC CPA for all your tax-related needs!
Rhodes flourished until 225 BC. An earthquake caused the statue to topple and not very much is heard from Rhodes after that. Did the earthquake wipe out the trade? Decimate the harbor? Well, this is the rest of the story. The Roman Senate was furious with Rhodes due to the fact that during the recent Rome-Macedonia War, Rhodes had declared neutrality. After relying so much on Rome for so many years, Rome wanted more. They wished Rhodes to take their side and contribute to the war effort. Because of this, after the war, the Romans chose their move. They established a tax-free port on the nearby Isle of Delos. There was no two percent harbor tax! In the first year since the port was established, trade declined eighty-five percent in Rhodes. Rhodes was in ruin. Go here if you want help with modern-day Tax Preparation, bookkeeping, and payroll in Durham NC.
So, was it the earthquake that ruined Rhodes’ prosperity? The answer is no, Rhodes had since rebuilt after the disaster (however, they did not replace the colossus). What brought Rhodes down was no earthquake or natural disaster or war or disease. It was Roman taxes. Everything to dodge a two percent tax. The Switzerland of the ancient world, the commerce giant of the east was toppled because traders desired to avoid a two percent tax.
Keep an eye out for W. Marc Gilfillan’s next chapter in his History of Taxes series: Roman Taxes.
http://www.marccpa.com/