W. Marc Gilfillan CPA

The island of Rhodes: a seminal connection to Rome and Greece. All shipping from the east stopped for restocking or to switch cargo at Rhodes. The harbor of the island, similar to every other harbor, had a tax on all transaction, which was two percent. Rhodes was prosperous and flourished, in the banking and commerce industry especially. The businessmen funded the creation of a 100-foot-tall bronze statue of Apollo near the entrance to the harbor. It named as one of the seven wonders of the ancient world (whether it really straddled the harbor entrance is unknown).

Rhodes was fine until 225 BC. An earthquake caused the statue to topple and not much more is known of Rhodes following the earthquake. Did the earthquake wipe out Rhodes? Destroy the harbor? Well, this is the remainder of the story. The Roman Senate was furious with Rhodes because during the late Rome-Macedonia War, Rhodes had declared a neutral state. After taking so much from Rome for so many years, Rome wanted more. They wanted Rhodes to side with them and help with the war effort. So, after the war, the Romans chose their move. They established a tax-free port on the nearby Isle of Delos. There was no two percent harbor tax! In the first year since the port was created, trade declined eighty-five percent in Rhodes. Rhodes was finished.

Did the earthquake do it? The answer is no, Rhodes had since rebuilt after the disaster (although they did not rebuild the colossus). What brought Rhodes down was no earthquake or natural disaster or war or disease. It was Roman taxation practices. All to dodge a two percent tax. The Switzerland of the ancient world, the commerce giant of the east was brought down 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.

The Rosetta Stone, discovered by Napoleon, was possibly the single most helpful Egyptian archaeological find to date. The Stone had duplicated writing in 3 different languages: Egyptian hieroglyphs, demotic (also called Egyptian script) and Greek. Using the Greek translation, archaeologists figured out how to understand the Egyptian script and subsequently the pictographs. However, the query remains: Egyptians had paper, called papyrus, so why was the writing carved in stone? Furthermore, why 3 languages? And why Greek?

The Stone has been around since 3000 B.C. The Rosetta Stone was created around 200 B.C. while Ptolemy V was in power (an emperor of Greek origin). So what happened to the Pharaohs? By this point in history, Egypt was taken over in 700 B.C. by the Assyrians, after that the Persians, and finally the Greeks in 330 B.C. After an existence of 2000+ years, Egypt was in decline.

The Ptolemy dynasty were for the most part good kings, but in 200BC, during which the Rosetta Stone was etched, Egypt had just ended a 10-year long civil war. The civil war started over excessive and oppressing taxation put in place by tough Greek tax collectors. When the war ended there was still much unrest. Ptolemy V put into a effect a Proclamation of Peace which gave forgiveness for any rebel and tax debtors, lowered taxation practices, stopped forced conscription into the navy, and restored tax immunity to the priesthood, temples, and their crops and lands, as it had been in the reign of the ancient Pharaohs. If you’re feeling the pressure with today’s taxes, call a Raleigh NC CPA for all your tax-related needs!

This turned out to be a great edge and financial windfall for the priests and temples and they desired to be sure first all people knew it and, second, didn’t want it to be thrown away again at some point in the future.

As a result, “Rosetta Stones” were carved and put in front of each temple throughout Egypt. The Rosetta stones proclaimed to all that tax immunity had been given to the priesthood and this temple and was a “Do Not Enter” sign to cease the lawlessness of the king’s tax collectors. Go here if you want help with modern-day Tax Preparation, bookkeeping, and payroll in Raleigh NC.

This still begs the question: why carved into stone? The answer is because the priesthood wanted to make sure it wouldn’t fade in history or able to be easily disposed. Another question was why was it written in three languages? The Stone was written in three languages because all could see and follow the message the priests desired to send to everyone of the country. The stone was written in Greek to be very clear to the king’s tax collectors that they couldn’t even set foot in the gates of the temple.

So, the most important Egyptian archaeological find in history, the stone translated the mysterious language of the Egyptians, made us capable of discovering the secrets of hieroglyphic writing and thereby the key to unlocking the history and the understanding of the Egyptian way of life for 3000 years was, in truth, a tax document.

Keep an eye out for my next chapter in his History of Taxes series: Taxes and The Colussus of Rhodes.

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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