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 change cargo at Rhodes. The harbor of the city, similar to all other harbors, had a tax on everything, which was two percent. Rhodes prospered and was fabulously wealthy in the banking and commerce industry especially. The businessmen funded the creation of a hundred-foot-tall bronze colossus of Apollo at the entrance to the harbor. It named as one of the seven wonders of the ancient world (whether it truly straddled the harbor entrance is unknown). If you’re feeling the pressure with today’s taxes, call a Raleigh NC CPA for all your tax-related needs!

Things were fine until 225 BC. An earthquake toppled the statue and not much more is heard from Rhodes following the quake. Did the earthquake wipe out the city? Decimate the harbor? Well, this is the rest of the story. The Roman Senate was angry with Rhodes because during the late Rome-Macedonia War, Rhodes had declared a neutral state. 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. So, after the war, the Romans made their course of action. They created a tax-free harbor on the nearby Isle of Delos. There was not a two percent harbor tax! In the first year since the port was established, trade declined eighty-five percent in Rhodes. Rhodes was finished. Go here if you want help with modern-day Tax Preparation, bookkeeping, and payroll in Cary NC.

Did the earthquake do it? The answer is no, Rhodes had actually rebuilt after the earthquake (although they did not rebuild the colossus). What brought Rhodes down was no earthquake or natural disaster or war or famine. It was Roman taxation practices. Everything to avoid a two percent tax. The Switzerland of the ancient world, the commerce giant of the east was toppled because people 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/

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