A History of Taxes – Part 1


Taxes and Historical Egypt

Historical Egypt was not a land of merciless taskmasters and oppressed slaves – that is the impression we get from the story of Moses – which got here at a time of unrest in Egypt. Fashionable translations of hieroglyphics point out that life in historical Egypt was normally bountiful and peaceable. The land was wealthy, women and men have been equal and life was loved. Now there have been tax collectors – as quite a few as “the sands of the seas”. The order in Egyptian life was maintained by these scribes who have been charged with implementing the pharoah’s tax insurance policies. Most all the pieces was taxed – gross sales, slaves, foreigners, imports, exports, companies. Agriculture was taxed at a hefty 20%. There was even a tax on cooking oil and inspectors would make common visits to kitchens to make sure that free drippings weren’t getting used as an alternative of the taxed oil.

As an apart, the phrase “freedom” within the historical occasions referred to not one’s political/social liberty however to 1’s No EFIN No Problem standing. Should you have been “free” you paid no taxes. Curiously, the phrase shouldn’t be discovered anyplace within the Egyptian language. Nevertheless, the scribes weren’t brutal. They have been taught to behave kindly in the direction of the poor and defenseless. One historical textual content instructs “if a poor farmer is in arrears together with his taxes, remit 2/3 of them.”

One other textual content admonishes officers to “cheer up everybody and to place them in good humor.” And, if anybody is struggling underneath pressures of taxation, or is on the finish of his means, you could let the case go unchecked.”

This coverage was known as “philanthropa”. From that we get the phrase philanthropy. Over the 3000 years of the Egyptian empire, there have been occasions of humane and respectable tax administration.

Taxes and Greeks

The Greeks had two methods of taxation. One was liturgy the place rich residents unselfishly contributed extra to the federal government than they have been required to. The opposite system was “tax-farming” which had an extended and colourful historical past. Tax farmers have been non-public contractors who bid at public public sale for the precise to gather a sure tax, equivalent to a harbor tax, an inn tax, or a gross sales tax. With correct information from prior years, and barring some calamity, the quantity of tax income anticipated may very well be precisely calculated. The enterprise was dangerous, however seems to have been worthwhile. Within the city-states, tax farming proved superior to authorities tax administration. The non-public man did a greater and extra economical job of accumulating taxes.

The fitting to gather taxes is an excessive delegation of sovereign energy. However since taxes have been low in Greek democracies, tax farming was not a serious enterprise. To the Greeks, it was merely a cost-effective method to accumulate taxes in a system wherein tax evasion was not definitely worth the bother. Probably the most severe abuses of the system got here from the tax farmers.

The modest system of tax farming, initially arrange by the city-states contrasted strongly with the system of the later Greeks within the third to first century B.C. We see accounts of how the world groaned underneath the horrible oppression of the tax farmers. And this was earlier than the Romans obtained maintain of it! The Greek democrats who developed tax farming would have been astounded to study that in just a few hundred years their easy non-public assortment system would evolve in to a monster of oppression. They might have been much more astounded, maybe, to study that tax farming flourished in Western civilization, in lots of weird varieties, for two,500 years, lastly going out of fashion within the early 1900’s.

Greeks have been giants within the historical world and had an fascinating view of taxes and authorities. The Greeks mentioned that the freedom and freedom of a society was finest measured by its tax system. We, 2,500 years later, are much less profound in our evaluation of taxation. We appear to simply accept any tax adopted by our legislators. We let class politics create tax legal guidelines. And we let legislators tax nearly any factor they please in any kind they want.

General, the intense spot within the Greek story was of their administration of tax. Tax income was assessed and administered by the taxpayers themselves, with out the intervention of a large authorities bureau. Much more essential was the response of the wealthy to the wants of the group. They shared their wealth with the group and didn’t hesitate to see that the town and its folks benefited from the bounties bestowed on them.

The Greek view was easy – taxes are tyrannical, and therefore unlawful, if they’re demanded by conceitedness and compulsion. They’re justifiable when based mostly on reasonableness and loving care.

We’ve retreated an excellent distance from these lofty concepts.

Taxes and The Rosetta Stone

The Rosetta Stone was unearthed by Napoleon, and was maybe a very powerful Egyptian archaeological discovery in historical past. The Stone had the identical writing in 3 totally different languages: Hieroglyphics, demotic (Egyptian script) and Greek. Utilizing the Greek translation, we have been in a position to decipher the demotic after which the hieroglyphs.

However the query stays: Egyptians had paper, known as papyrus, so why was the writing carved into stone? Additionally, why 3 languages? And why Greek?

The Stone has been round since 3000+ BC. The Rosetta Stone was carved round 200BC throughout the reign of Ptolemy V (a king of Greek origin). So what occurred to the Pharaohs? By this time, Egypt had been conquered in 700 BC by the Assyrians, then the Persians, and at last the Greeks in 330 BC. After present for 2000+ years, Egypt was in decline.

The Ptolmey’s have been by and huge good kings, however round 200BC, when the Rosetta stone was carved, Egypt had simply concluded a decade lengthy civil warfare. The civil warfare broke out over extreme and oppressive taxes strengthened by robust Greek tax collectors. Because the was ended there was nonetheless a lot unrest. Ptolemy V issued a Proclamation of Peace which granted basic amnesty for all rebels and tax debtors, eased tax legal guidelines, eradicated compelled conscription into the navy, and restored tax immunity to the clergymen and temples and their crops and lands because it had been within the days of the good pharaohs.

This was an excellent benefit and monetary windfall for the clergymen and temples they usually wished to ensure first everybody knew it and, second, didn’t need it taken away once more in some unspecified time in the future sooner or later.

Because of this, “Rosetta Stones” have been carved and positioned in entrance of every temple all through Egypt. The Rosetta stones proclaimed to all that tax immunity had been granted to the clergymen and this temple and acted as a “Do Not Enter” signal to curtail the lawlessness of the king’s tax males.

This nonetheless begs the query: why written in stone? The reply is as a result of the clergymen wished to ensure it would not disappear or in a position to be simply destroyed. One other query was why was it written in 3 languages? The Stone was written in 3 languages so that every one could learn and heed the message the clergymen wished to unfold to all of Egypt. It was written in Greek to be particularly clear to the king’s tax males that they might not even set foot contained in the temple gates.

So, a very powerful Egyptian archaeological discover ever; the stone that unraveled the mysterious language of the Egyptians, the stone that enabled us to find the secrets and techniques of hieroglyphic writing and thereby the important thing to unlocking the historical past and understanding of the Egyptian empire for 3000 years, was, in truth, a tax doc.

Taxes and The Colussus of Rhodes

The island of Rhodes – gateway to Rome and Greece. All transport from the east stopped for provides or to switch cargo at Rhodes. The harbor of Rhodes, like each different harbor, had a tax – 2%. Rhodes prospered and flourished, banking and commerce particularly. The businessmen erected a 100 foot bronze colussus of Apollo on the entrance to the harbor. It turned recognized to us as one of many 7 wonders of the traditional world (whether or not it really straddled the harbor entrance is unknown).

Issues have been tremendous till 225 BC. An earthquake toppled the colossus and never rather more is heard from Rhodes after that. Did the earthquake wipe them out? Destroy the harbor? Nicely, here is the remainder of the story. The Roman Senate was angered at Rhodes as a result of throughout the latest Rome-Macedonia Battle, Rhodes had declared neutrality. After taking a lot from Rome for therefore a few years, Rome anticipated extra. They wished Rhodes to take their aspect and contribute to the warfare effort. So, after the warfare, the Romans made their transfer. They established a tax-free port on the close by Isle of Delos. There was no 2% harbor tax! Within the first yr, commerce declined 85% in Rhodes. Rhodes was ruined.

Did the earthquake do it? No, Rhodes had really rebuilt after the earthquake (though they did not change the colossus). What introduced Rhodes down was no earthquake or pure catastrophe or warfare or famine. It was Roman tax coverage. All to keep away from a 2% tax. The Switzerland of the traditional world, the business big of the east was introduced down as a result of folks wished to keep away from a 2% tax.

Marc was born in Cary a very long time in the past. Sure, he’s an authentic Cary-ites. Cary was actually a small city again then and it was when he was at Cary Excessive Faculty, house of the ‘White Imps’, that Cary obtained its second cease gentle and the ‘white’ half was dropped from the White Imps mascot to be extra racially delicate. After graduating from UNC-Chapel Hill, Marc served within the US Air Pressure for 4 years. He was a missile launch officer at an ICBM complicated and was stationed at Little Rock Air Pressure Base in Arkansas.Marc was able to go to nuclear fight, toe-to-toe with the Russkies, in your behalf. Through the quiet moments of defending your freedom Marc studied for an MBA diploma.


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