The History of Taxes, Section 4: Taxation and The Isle of Rhodes

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. Any shipping from the east halted for restocking or to switch cargo at Rhodes. The port of the city, like every other harbor, had a tax on all goods, which was 2%. Rhodes was prosperous and flourished, in the banking and commerce industries especially. The wealthy men funded the creation of a hundred-foot-tall bronze colossus of Apollo near the entrance to the harbor. It chosen as one of the seven wonders of the ancient world (whether it actually straddled the harbor entrance is unknown). If you are feeling the pressure with today’s taxes, call a Cary NC Accountant for all your tax-related needs!

Things were fine until 225 BC. An earthquake caused the colossus to topple and not much more is heard from Rhodes following the disaster. Did the earthquake wipe out the city? Destroy the harbor? Well, here’s the rest of the tale. The Roman Senate was furious with Rhodes due to the fact that during the late Rome-Macedonia War, Rhodes had maintained neutrality. After taking so much from Rome for so many years, Rome expected more. They wished Rhodes to take their side and contribute to the war effort. So, after the war, the Romans chose their course of action. They created a tax-free harbor on the nearby Isle of Delos. There was no 2% 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.

Did the earthquake do it? The answer is no, Rhodes had actually rebuilt after the earthquake (although they didn’t replace 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 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/

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