The Roman Empire 3 of 5 Tax increases
At first, Rome has two primary ways
to tax its citizens. The head tax in which every citizen between the ages of
12 to 65 pays a fixed amount, and the tributum soli. The tributum soli was levied
on land ownership, croplands, forests, ships, animals and slaves.A majority
of these went directly to the capital city Rome, this left provinces to levy
their own taxes to support themselves. Desperate to produce income, emperors
gradually increased taxes on land ownership, commerce and inheritance. This
new tax rates forced farmers and merchants to abandon their lands and businesses
as they could no longer afford to pay taxes and still leave something for their
business to operate. The economic struggles
of Rome left an imprint even on religious books such as the Christian bible,
where most citizens of a Roman ruled Jerusalem resented tax collectors. This
kind of oppression prompted the people to seek for a messiah, which its primary
purpose is to free them under Roman hands, but it never materialized, as Rome
ruled over them for hundreds of more years.
The newly implemented Chrysargyron
tax did more damage to its economy than contributing more wealth for Rome’s
treasury. This is aimed towards the manufacture of goods and retail. This means
the more merchants and producers produced, the higher their taxes would be.
This left them with little profit margins or even none as some cannot cover
their marginal costs as a result of the high taxes being imposed to them. Tax time is a period in a year where Rome is mostly happy, since it expects
to receive bountiful wealth coming in from collectors. However, at a merchant’s
perspective this is a time where they think twice about their future as they
don’t have enough money to pay their taxes and still have something left
for them. To avoid fines, a majority of traders were forced to sell their only
source of livelihood just to pay their dues. The result is lesser and lesser
tax money as years go by and an ever increasing tax rates as a result of less
market activity from bankruptcy. The increase in tax rates and the decreasing
activity of its market economy only seemed to even out Rome’s revenue
over time. Among other tax oppression imposed
by Rome is the taxation of luxury goods. The Roman’s lust for luxury items
such as silk from Asia over local linen, Arabian perfume, and other precious
stones were ripe for exploitation. This huge appetite for foreign items further
drained Rome of its Gold and Silver bullions. Taxes were such a burden during
the Roman era that being close and a good friend of the emperor gives you a
big tax exemption. As its citizens suffered from this high tax rates which resulted
to poverty, the Roman elites were enjoying the good life, even making a direct
path to high office; a time of great corruption is underway.