A History of Taxation, Chapter Four: Taxation 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 shipping from the east halted for supplies or to transfer cargo at Rhodes. The port of the city, similar to every other harbor, had a tax on all transaction, which was 2%. Rhodes prospered and flourished, in the banking and commerce industry specifically. The wealthy men erected a 100-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 truly 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 very much is known of 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 port on the nearby Isle of Delos. There was no 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 Raleigh NC.

So, was it the earthquake that ruined Rhodes’ prosperity? 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 taxation practices. Everything to dodge a two percent tax. The Switzerland of the ancient world, the commerce giant of the east was toppled 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/