W. Marc Gilfillan CPA

Came across a great publication (at least to me, anyway) from the IRS.

http://www.irs.gov/pub/irs-utl/friv_tax.pdf

It is 80 some pages all about the frivolous tax arguments you hear about this time of year – why you don’t have to file a return, the 16th amendment was never ratified, etc. – and the IRS’s replies and comments on said arguments.

The Greeks had two ways of taxing their people. One was liturgy, where wealthy citizens unselfishly gave more to the government than they were made to. The other taxation method was named “tax-farming,” which had a long and colorful history. Tax farmers were private citizens who bid at public auctions for the right to collect a specific tax, for example, a harbor tax, an inn tax, or a sales tax. With precise records from prior years, and excluding any misfortune, the amount of tax gain expected could be accurately calculated. The business was risky, but seems to have been profitable. In the city-states, tax farming was a better method to government taxation. The private contractor did a better and more economical job of collecting taxes.

The right to collect taxes is a huge delegation of sovereign power. But considering that taxes were low in Greek city-states, tax farming wasn’t a major enterprise. To the Greeks, it was a simple efficient method of collecting taxes in a nation in which tax evasion was not worth the effort. The most serious abuse of the system came from the tax farmers.

The modest system of tax farming, originally set up by the city-states, was completely different from the system of the later Greeks in the 3rd to first century B.C. We see accounts of how the world suffered under the terrible oppression of the tax farmers. And this was before the Romans were around! The Greek democrats who instituted tax farming would have been astounded to see that in a few hundred years their simple private collection method had evolved into a monstrosity of oppression. They would have been even more astounded, perhaps, to find out that tax farming flourished in Western civilization, in many bizarre methods, for 2,500 years, finally going out of style in the early 1900’s. Go here if you want help with modern-day Tax Preparation, bookkeeping, and payroll in Cary NC

Greeks were giants in the ancient world and had an interesting take on taxes and government. The Greeks said that the liberty and freedom of a society was best measured by its tax system. We, 2,500 years later, are less profound in our analysis of taxation. We seem to accept any tax adopted by our legislators. We let class politics form tax laws. And we let legislators tax just about anything they please in any way they want. If you’re feeling the pressure with today’s taxes, call a Raleigh NC Accountant for all your tax-related needs!

Overall, the bright spot in the Greek history was in their administration of taxes. Tax revenue was evaluated and administered by the taxpayers themselves, without the intervention of a massive government bureaucracy. Even more important was the response of the rich to the needs of the community. They shared their wealth with the community and did not hesitate to see that the city and its people benefited from the bounties bestowed on them.

The Greek view was simple – taxes are tyrannical, and hence illegal, if they are demanded by arrogance and compulsion. They are justifiable when based on reasonableness and loving care. We have retreated a great distance from those lofty ideas.

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

Ancient Egypt wasn’t a land of terrible taskmasters and oppressed slavery – that is only the stigma we get from the tale of Moses, which came at a time of turmoil in Egypt. Modern translations of Egyptian language tell a tale of life in ancient Egypt was usually bountiful and peaceful. The land was rich, women and men had roughly equal rights and life was enjoyed. Now, there were tax collectors, as numerous as “the sands of the seas”. The high level of Egyptian life was maintained by these “scribes” whose job was enforcing the Pharoah’s tax policies. Almost everything was taxed – sales, slaves, foreigners, imports, exports, and businesses. Agriculture was taxed at a hefty 20%. There was also a tax on cooking oil and inspectors would make continuous visits to kitchens to ensure that free drippings were not being wasted instead of the taxed oil.

The word “freedom” ironically in ancient Egypt referred not to someone’s political or social liberty but to one’s tax level. If you were “free,” it meant that you paid no taxes. Interestingly, the word can’t be found anywhere in the Egyptian language. Good thing we live in this time eh?

However, the scribes were never brutal (at least in theory). They were taught to act kindly towards the poor and defenseless. One ancient translation instructs: “if a poor farmer is in arrears with his taxations, remit two-thirds of them.”

Another translation instructs scribes to “cheer up everyone and to direct them into a good mood.”

And, if someone is suffering under the stress of their taxes, or is at the end of his means to pay them, you must let the case go unchecked.” This lenient policy was called “philanthropa”. From this word we get the word philanthropy.

Over the 3000 years of the Egyptian empire, there were many periods of humane and decent tax administration.

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

10.  Pumpkin pie is better than humble pie.

9.  “Children laughing” is better than “adults weeping.”

8.  Caroling is more fun than an audit.

7.  What you give is your choice.

6.  Whose “naughty” list would you rather be on?

5.  “Holy Night” is more melodious than “Holy Cow!”

4.  “Noel” is better than “Oh well!”

3.  Santa can only damage your house. The IRS can take it away.

2.  If you’re bad, Santa ignores you; if you’re bad, the IRS won’t leave you alone.

1.  Being kissed under the mistletoe is better than what the tax collector does to you.

Cary & Raleigh’s Tax Preparation Expert

W. Marc Gilfillan, CPA has been serving Triangle Area Individuals and Businesses in North Carolina since 1986, providing high quality, friendly and personalized attention to each client.  With services ranging from Tax Planning and Preparation for Individuals, to full service accounting, bookkeeping and tax preparation for local businesses.

For the highest quality personalized services,
SAVE ON YOUR TAXES – CALL US TODAY at (919) 859-1100.

SAVE ON YOUR TAXES – CALL US TODAY at (919) 859-1100
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