W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
The island of Rhodes: a linkage to Rome and Greece. All shipped goods from the east halted for restocking or to transfer cargo at Rhodes. The harbor of Rhodes, similar to all other harbors, had a tax on everything, which was 2%. Rhodes prospered and was fabulously wealthy in the banking and commerce industry especially. The businessmen erected a hundred-foot-tall bronze statue of Apollo at the entrance to the port. It chosen as one of the seven wonders of the ancient world (whether it really straddled the harbor entrance is unknown). If you’re feeling the pressure with today’s taxes, call a Cary NC CPA for all your tax-related needs!
Rhodes was fine until 225 BC. An earthquake toppled the colossus and not much more is heard from Rhodes after that. Did the earthquake wipe out the city? Destroy the harbor? Well, this is the rest of the tale. The Roman Senate was angry with Rhodes because during the recent Rome-Macedonia War, Rhodes had declared neutrality. After taking so much from Rome for so many years, Rome wanted more. They wished Rhodes to side with them and help with the war effort. Because of this, after the war, the Romans chose their course of action. They established a tax-free port on the nearby Isle of Delos. There was no 2% harbor tax! In the first year since the port was created, 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 rebuild the statue). What brought Rhodes down was not an 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 wanted to avoid a 2% tax.
Keep an eye out for W. Marc Gilfillan’s next chapter in his History of Taxes series: Roman Taxes.
http://www.marccpa.com/