W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

The island of Rhodes: a linking to Rome and Greece. All shipped goods from the east halted for restocking or to switch cargo at Rhodes. The port of the city, similar to all other harbors, had a tax on all goods, which was two percent. Rhodes prospered and was fabulously wealthy in the banking and commerce industry especially. The wealthy heads of Rhodes erected a hundred-foot-tall bronze statue of Apollo at the entrance to the port. It became known to us as one of the seven wonders of the ancient world (whether it really 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 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 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 eighty-five percent in Rhodes. Rhodes was finished. 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 since rebuilt after the disaster (although they didn’t replace the colossus). What brought Rhodes down was not an earthquake or natural disaster or war or famine. It was Roman taxes. All to avoid a 2% tax. The Switzerland of the ancient world, the commercial giant of the east was brought down 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/