Online Calculator | A Lesson in Taxation, Part Four: Taxes and The Island of Rhodes

A Lesson in Taxation, Part Four: Taxes and The Island of Rhodes

W. Marc Gilfillan

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. Any shipping from the east halted for restocking or to change cargo at Rhodes. The harbor at the island, similar to every other harbor, had a tax on all goods – 2%. Rhodes was prosperous and flourished, in the banking and commerce industry especially. The elite of the island funded the creation of a hundred-foot-tall bronze statue of Apollo near the entrance to the harbor. It chosen as one of the 7 wonders of the ancient world (whether it actually straddled the harbor entrance remains a mystery). If you are 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 after that. Did the earthquake wipe out the city? Decimate the harbor? Well, here’s the rest of the tale. The Roman Senate was angry with Rhodes because 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 wished Rhodes to side with them and help with the war effort. Because of this, after the war, the Romans made their move. They created a tax-free harbor on the nearby Isle of Delos. There was no 2% harbor tax! In the first year since the port was established, trade declined 85% in Rhodes. Rhodes was ruined. 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 disaster (however, they didn’t replace the colossus). What brought Rhodes down was no earthquake or natural disaster or war or famine. It was Roman tax policy. Everything to dodge a two percent tax. The Switzerland of the ancient world, the commerce giant of the east was brought down because people wanted 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/

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