A Lesson in Tax Law, Chapter 4: Tax Law and The Colossus of Rhodes
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. Any shipped goods from the east stopped for restocking or to change cargo at Rhodes. The port of the city, similar to all other harbors, had a tax on all transaction – 2%. Rhodes prospered and flourished, in the banking and commerce industries especially. The businessmen erected a hundred-foot-tall bronze statue 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 Raleigh NC Accountant for all your tax-related needs!
Rhodes flourished until 225 BC. An earthquake caused the statue to fall and not very much is heard from Rhodes after that. Did the earthquake wipe them out? Decimate the harbor? Well, here’s the remainder of the tale. The Roman Senate was angry with Rhodes due to the fact that during the late Rome-Macedonia War, Rhodes had maintained a neutral state. After taking so much from Rome for so many years, Rome expected more. They wanted Rhodes to take their side and help with the war effort. Because of this, after the war, the Romans chose their move. They created 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 created, trade declined 85% in Rhodes. Rhodes was in ruin. 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 didn’t replace the colossus). What brought Rhodes down was no earthquake or natural disaster or war or famine. It was Roman shrewd tax policy. All 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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