A History of Tax Law, Chapter 4: Taxation and The Island 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 shipped goods from the east halted for supplies or to transfer cargo at Rhodes. The harbor at Rhodes, similar to every other harbor, had a tax on all goods – 2%. Rhodes was prosperous and was fabulously wealthy in the banking and commerce industries especially. The businessmen erected a hundred-foot-tall bronze colossus 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 is unknown). If you are feeling the pressure with today's taxes, call a Cary NC CPA for all your tax-related needs!
Things were fine until 225 BC. An earthquake toppled the statue and not very much is heard from Rhodes after that. Did the earthquake wipe them out? Destroy the harbor? Well, here’s the remainder of the tale. The Roman Senate was angry with Rhodes because during the recent Rome-Macedonia War, Rhodes had declared a neutral state. After taking so much from Rome for so many years, Rome expected more. They wished Rhodes to side with them 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 two percent 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.
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 no earthquake or natural disaster or war or disease. It was Roman taxation practices. 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 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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