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

Mithridates the Great ruled a tiny nation near what is currently known as Turkey. He had the amazing ability to create rebellion with unhappy taxpayers. In 88 BC he organized a rebellion fighting Roman rule. By promising five years of tax immunity to every city that joined his army, he gathered considerable help.

The Roman Senate quickly took swift action and told General Sulla to muster an army and restore Roman authority in the east. Sulla succeeded in suppressing the rebels, but only following a four year war. When the revolt was crushed, Sulla told the leaders of the disgruntled cities to meet him at Ephesus. There the citizens were to remit 5 years of back taxes and compensate the general for his war debt.

To make sure the tax was collected, Sulla created “special agents.” These special agents had the power to scourge and behead, which was enough to make most taxpayers fall in line. Until this period there were self-assessment tax collections, private tax collecting, military tax collection and the traditional government tax collectors. However, these newly instituted “special agents” were very skilled specialists 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 Cary, NC for all your tax-related needs!

Special Agents have emerged time and again in the course of history, persisting into the modern age as “fiscal police” or simply “special agents”, given the name first instituted by Sulla over 2000 years past. As the practice of Sulla’s special agents was instituted in neighboring 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 unwavering loyalty of their soldiers. Huge civil wars started as rival armies slaughtered each other. With these moderately private armies, the institution of a military dictator was inescapable. So, the Roman Republic dissolved. Royalty, dictators, and military strategists would now run the Roman Empire for the next two thousand years. Democracies and republics would not play a large role in civilization again until the 1800s. Go here if you want help with modern-day Tax Preparation in Raleigh, 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/

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

Finally moving away from the Greeks, we finally come to the Romans. Historians often refer to Roman tax policy as “more or less organized stealing” and Roman tax collectors as “a band of thugs.” However, Roman taxation wasn’t always corrupt. There was a 200-year period at the peak of the Roman Empire when taxes were modest. Actually, every kind of tax, as well as no taxes, marked the Roman period. Taxation was as necessary yet as unpredictable in the Roman story as were the legions, the Senate and the Caesars. The arguably insane emperor Nero once advised to abolish every indirect tax and create a “wonderful present to the human race.” If you’re feeling the pressure with today’s taxes, call a Tax Preparer in Cary, 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 army, which can be the most expensive operation in any society, was a citizen’s army, composed of land-owners who served for a year without pay. They even brought their own uniforms and gear. This spirit of volunteer free public service inspired most government offices. Even the magistrates worked for the government for free. It is hard to understand the importance of this ancient practice, especially in our individualistic society, when nobody seems willing to raise a finger for the government without a fat paycheck. Go here if you want help with modern-day Tax Preparation in Durham, NC.

The ideal way to reduce heavy taxation is to instil in all citizens a spirit of selfless service for the greater good. It is not necessary to curtail public programs and services; what is necessary is the curtailment of the spirit of gain and profit that infects public servants and contractors.

The Romans, similar to other ancient civilizations, used the important people of their civilization to deal with tax law. Taxpayers loved and admired the censors, and no doubt the integrity of these important men rubbed off on the taxpayers. In contrast, modern tax practices use professional public relations contractors to manipulate taxpayers with advertising campaigns that play on fear more than integrity. Trouble began, however, when Roman armies began living off of the people and took 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, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

The isle of Rhodes: a linking to Rome and Greece. Any shipped goods from the east stopped for supplies or to transfer cargo at Rhodes. The port of the city, similar to every other harbor, had a tax on all transaction, 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 colossus of Apollo at the entrance to the port. It chosen as one of the seven wonders of the ancient world (whether it really 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!

Rhodes was fine until 225 BC. An earthquake caused the colossus to fall 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 furious with Rhodes due to the fact that during the recent Rome-Macedonia War, Rhodes had declared a neutral state. After relying so much on Rome for so many years, Rome expected more. They wanted Rhodes to take their side and contribute to the war effort. So, after the war, the Romans chose their course of action. They created a tax-free harbor on the nearby Isle of Delos. There was not a two percent harbor tax! In the first year since the port was created, trade declined 85% in Rhodes. Rhodes was ruined. Go here if you want help with modern-day Tax Preparation, bookkeeping, and payroll in Cary NC.

Did the earthquake do it? The answer is no, Rhodes had actually rebuilt after the earthquake (although they did not replace the colossus). What brought Rhodes down was no earthquake or natural disaster or war or famine. It was Roman taxes. Everything to avoid 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, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

The Rosetta Stone, discovered by Napoleon, was possibly the most seminal Egyptian archaeological find to date. The Stone had duplicated text in three different languages: Egyptian hieroglyphs, demotic (known as Egyptian script) and Greek. Using the Greek version, we were able to decipher the demotic and then the hieroglyphics. However, the query is sustained: Egyptians had paper, known today as papyrus, so why was the work etched into stone? Also, why 3 languages? And why Greek?

The Stone has been around since 3000 B.C. The Rosetta Stone was carved around 200 B.C. while Ptolemy V was in power (a king of Greek origin). So where did the Pharaohs go? By this time, Egypt was conquered in 700 B.C. by the Assyrians, after that the Persians, and finally the Greeks in 330 B.C. After existing for 2000+ years, Egypt was in decline.

The Ptolemy’s were by and large decent rulers, but around 200BC, when the Rosetta Stone was carved, Egypt had recently concluded a ten year long civil war. The internal struggle broke out over exorbitant and oppressing taxes put in place by corrupt Greek tax collectors. When the struggle ended there was still much unrest. Ptolemy V issued a Proclamation of Peace which gave forgiveness for any rebel and tax debtors, reigned in tax laws, eliminated forced draft into the navy, and reinstated tax exemption to the priesthood, temples, and their crops and lands, as it had been in the reign of the great pharaohs. If you are feeling the pressure with today’s taxes, call a Raleigh NC CPA for all your tax-related needs!

This was a superb advantage and financial windfall for the priests and temples and they wanted to be certain first all people knew it and, second, did not desire it to be thrown away again at a time in the future.

As a result, “Rosetta Stones” were carved and placed at the entrance of every temple throughout Egypt. The Rosetta stones proclaimed to everyone that tax immunity had been given to the priesthood and this temple and was a “Do Not Enter” sign to curtail the lawlessness of the king’s tax men. Go here if you want help with modern-day Tax Preparation, bookkeeping, and payroll in Cary NC.

All of this still begs the question: why written in stone? The answer? Because the priests wanted to make sure it wouldn’t fade in history or able to be easily destroyed. Another question was why put it in 3 languages? The Stone was carved in three languages so that everyone may see and heed the message the priests desired to send to all of the country. It was written in Greek to be crystal clear to the king’s tax men that they couldn’t even come inside the temple gates.

As a result of the most important Egyptian archaeological find ever, the Rosetta Stone translated the weird language of the Egyptians, made us capable of discovering the secrets of hieroglyphic writing and thereby the secret to unlocking the mystery of ancient Egypt and the understanding of the Egyptian empire for 3000 years was, in truth, a tax document.

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

http://www.marccpa.com/

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

Ancient Egypt wasn’t a land of cruel taskmasters and miserable slaves - that’s only the stigma we get from the story of Moses, which formed at a time of unrest in Egypt. Actual translations of hieroglyphics tell a tale of life in ancient Egypt was usually pleasant and relatively at peace. The land was rich, women and men were equal and life was good for most. Now, there were tax collectors, as numerous as “the sands of the seas”. The high level of Egyptian life was kept by these “scribes” who were charged with enforcing the pharaoh’s tax mandates. Most everything was taxed - sales, slaves, foreigners, imports, exports, and businesses. Crops were taxed at an astounding 20%. There was even a charge on cooking oil and inspectors would make continuous visits to kitchens to ensure that free drippings were not being used instead of the taxed oil.

The word “freedom” ironically in ancient Egypt referred not to a person’s political or social liberty but to one’s tax status. If you were “free,” it meant that you paid no taxes. Ironically, the word can’t be found anywhere in the Egyptian language. Good thing we live in this time eh? Go here if you want help with modern-day Tax Preparation, bookkeeping, and payroll in Cary NC.

However, the scribes were never inconsiderate (at least in theory). They were taught to act kindly to the poor and defenseless. An example from an ancient translation states: “if a poor farmer is in arrears with his taxes, remit 2/3 of them.”

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

And, if someone is struggling under the stress of taxation, or is at the end of his means to pay them, you must let the case go unchecked.” If you’re feeling the pressure with today’s taxes, call a Raleigh NC Accountant for all your tax-related needs!

This lenient policy was called “philanthropa”. From that we get the word philandthropy.

Over the 3000 years of the Egyptian empire, there were many times 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. http://www.marccpa.com/