A History of Taxation, Chapter 4: Taxes and The Isle of Rhodes
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.
