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A Lesson in Tax Law, Part 4: Taxation and The Colossus of Rhodes
By plrprousers | December 8, 2009
W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
The isle of Rhodes: a seminal connection to Rome and Greece. All shipped goods from the east halted for supplies or to switch cargo at Rhodes. The port of Rhodes, like all other harbors, had a tax on everything, which was 2%. Rhodes prospered and was fabulously wealthy in the banking and commerce industries specifically. The wealthy men erected a hundred-foot-tall bronze statue of Apollo at the entrance to the harbor. 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 are feeling the pressure with today’s taxes, call a Raleigh NC Accountant for all your tax-related needs!
Things were fine until 225 BC. An earthquake toppled the colossus and not very much is heard from Rhodes after that. Did the earthquake wipe out the trade? Decimate the harbor? Well, this is the rest of the story. The Roman Senate was angry with Rhodes due to the fact that during the late Rome-Macedonia War, Rhodes had declared 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 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 ruined. Go here if you want help with modern-day Tax Preparation, bookkeeping, and payroll in Raleigh 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 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 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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