W. Marc Gilfillan

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

Now that we’re moving away from the Greeks, we finally come to the Romans. Historians often speak of Roman tax policy as “more or less organized robbery” and Roman tax collectors as “a bunch of robbers.” But Roman tax law wasn’t always bad. There was a two hundred year period at the zenith of the Roman Empire when taxes were moderate. Actually, all kinds of taxes, as well as no taxation, characterized the Roman period. Taxes were as necessary yet as unpredictable in the Roman story as were the legions, the Senate and the Caesars. The half-mad emperor Nero once offered to get rid of every indirect tax and create an “amazing present to the human race.” If you are feeling the pressure with today’s taxes, call a Tax Preparer in Durham, NC for all your tax-related needs!

 

The Roman Republic – The Early Years

The early Roman Republic did not require much taxation because it operated with free labor. The military, which is arguably the greatest expense in every society, was a citizen’s military, comprised of property owners who served for one year without pay. They even provided their own uniforms and equipment. This level of volunteer free public service extended to most government offices. Even the judges worked for the city without pay. It is difficult to understand the validity of this ancient practice, especially in our age, where no one seems to want to raise a finger for the government without a fat paycheck. Go here if you want help with modern-day Tax Preparation in Cary, NC.

The ideal method in reducing heavy taxation is to instil in all citizens a spirit of unselfish service for the public good. It is not necessary to limit public programs and services; what is needed is the curtailment of the spirit of gain and profit that infests public figures and contractors.

The Romans, similar to many ancient civilizations, used the important men of their society to handle tax law. Taxpayers loved and admired these men, and no doubt the integrity of these powerful men rubbed off on the taxpayers. In contrast, modern tax systems use professional public relations officers to manipulate taxpayers with advertising techniques that utilize fear more than integrity. Trouble began, however, when Roman armies lived off of the populace and collected tribute in block form called “stipendium”.

Keep an eye out for W. Marc Gilfillan’s next chapter in his History of Taxes series: Taxes and the American Revolution.

http://www.marccpa.com/

W. Marc Gilfillan

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

The city of Rhodes: a gateway to Rome and Greece. All shipped goods from the east stopped for supplies or to change cargo at Rhodes. The harbor at the island, similar to all other harbors, had a tax on everything, which was two percent. Rhodes prospered and was fabulously wealthy in the banking and commerce industry especially. The businessmen funded the creation of a 100-foot-tall bronze colossus of Apollo near the entrance to the harbor. It became known to us 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 much more is known of Rhodes following the disaster. Did the earthquake wipe out the city? Decimate the harbor? Well, this is the rest of the story. The Roman Senate was angered at Rhodes because during the late Rome-Macedonia War, Rhodes had declared a neutral state. After relying so much on Rome for so many years, Rome wanted 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 port on the nearby Isle of Delos. There wasn’t a two percent harbor tax! In the first year since the port was established, 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 since rebuilt after the earthquake (although they did not rebuild the statue). What brought Rhodes down was not an earthquake or natural disaster or war or famine. It was Roman shrewd tax policy. 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/

W. Marc Gilfillan

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

Mithridates the Great was the leader of a tiny nation near what is now Turkey. He had an amazing ability to arouse rebellion among disgruntled taxpayers. In 88 BC he organized a rebellion fighting Roman rule. By promising five years of tax immunity to every city that followed his army, he gathered considerable help.

The Roman Senate quickly took swift action and appointed General Sulla to muster an army and restore Roman authority in the rebellious area. Sulla was victorious in squelching the rebellion after a 4-year struggle. When the revolt was squashed, Sulla ordered the leaders of the disgruntled cities to meet him at Ephesus. There the citizens were to denounce the 5 years of back taxes plus pay the general for the cost of the war.

To enforce this tax, Sulla established “special agents.” These special agents were given the ability to scourge and behead, which was plenty to cause any taxpayer cooperative. Until this time there were self-assessment tax collections, private tax collection, military tax collectors and the traditional government tax collectors. However, these new “special agents” were very skillful specialized men with the arrogance of bureaucrats and the power of military executioners. Taxpayers lost all inclination to evade. If you’re feeling the pressure with today’s taxes, call a Tax Preparer in Raleigh, NC for all your tax-related needs!

Special Agents have been instituted several times in the course of history, surviving in modern times as “financial police” or simply “special agents”, using the title first instituted by Sulla over two thousand years ago. As the practice of Sulla’s special agents was put in to place in other nations, the army came to understand that the rich spoils of war came from their general, as opposed to the Roman Senate. Roman generals returned to Rome with the blind loyalty of their soldiers. Great civil wars broke out as rivalling legions slaughtered each other. With these moderately private armies, establishment of a military dictator was inevitable. Thus, the Roman Republic died. Royalty, dictators, and generals would now run the Roman Empire for the next 2000 years. Democratically designed governments and republics would not play a dominant role in civilization again until the 1800s. Go here if you want help with modern-day Tax Preparation in Cary, NC.

Keep an eye out for W. Marc Gilfillan’s next chapter in his History of Taxes series: Taxes and the American Revolution.

http://www.marccpa.com/