A Lesson in Taxation, Part 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 seminal connection to Rome and Greece. Any shipped goods from the east stopped for supplies or to switch cargo at Rhodes. The port at the city, similar to every other harbor, had a tax on all transaction – 2%. Rhodes was prosperous and flourished, in the banking and commerce industries specifically. The wealthy men erected a hundred-foot-tall bronze statue of Apollo near the entrance to the harbor. It chosen as one of the seven wonders of the ancient world (whether it truly straddled the harbor entrance remains a mystery). If you’re feeling the pressure with today’s taxes, call a Raleigh NC CPA for all your tax-related needs!
Rhodes was fine until 225 BC. An earthquake toppled the colossus and not much more is known of Rhodes following the disaster. Did the earthquake wipe them out? 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 maintained a neutral state. After relying so much on Rome for so many years, Rome expected more. They wanted Rhodes to take their side and contribute to the war effort. So, after the war, the Romans made their move. They established a tax-free harbor on the nearby Isle of Delos. There was not a 2% 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 Raleigh NC.
So, was it the earthquake that ruined Rhodes’ prosperity? The answer is no, Rhodes had actually rebuilt after the earthquake (although 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 desired 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/
