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Taxation in ancient Rome

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In Ancient Rome, there were four primary kinds oftaxation:a cattle tax, aland tax,customs, and a tax on the profits of any profession. These taxes were typically collected by localaristocrats.The Roman state would set a fixed amount of money each region needed to provide in taxes, and the local officials would decide who paid the taxes and how much they paid. Once collected the taxes would be used tofund the military,create public works, establishtrade networks,stimulate theeconomy,and to fund thecursus publicum.

Types[edit]

Further information:List of Roman taxes
Ancient RomansolidusdepictingTheodosius II

The ancient Romans had two classes of taxes: thetributaand thevectigalia.[1]Tributaincluded thetributum soli(a land tax) and thetributum capitis(a poll tax). Thevectigaliaconsisted of four kinds of tax: theportoria(poll tax), thevicesima hereditatium(inheritance tax), thevicesima liberatis(postage tax), and thecentesima rerum venalium(auctionsales tax). Cities may have occasionally levied other taxes; however, they were usually temporary.[2]In ancient Rome there was noincome tax,instead the primarytaxwas theportoria.This tax was imposed on goods exiting or entering the city.[3][4]The size of the tax was based on the value of the item itself. It was higher on luxurious or expensive items, but lower on basic necessities. It was abolished in 60 BCE as it was no longer needed. The Roman empire's increasing size allowed for the government to procure sufficient funds from tributaries.[5]Roman veterans were exempt from paying theportoriatax.[6]Augustuscreated thevicesima hereditatiumand thecentesima.Thevicesimawas an inheritance tax and thecentesimawas a sales tax on auctions.[7]Both policies were unpopular.[8]They were designed to fund theaerarium militare,[9]which was a service that providedmoneytoveterans.[10]Caligulaabolished thecentesima rerum venaliumon account of its unpopularity.[11][12]Caracallagranted Roman citizenship to all male residents of the empire, which was likely a method of increasing the taxable population of the empire.[13][14]UnderConstantine,it had become difficult to pay taxes due to the continued debasement of thesolidus,increasing the prevalence of payment in kind.[15]

Collection and management[edit]

Administration[edit]

TheTemple of Saturn,a religious monument that housed the treasury in ancient Rome

Ancient Roman tax systems wereregressive,they applied a heavier tax burden on lower income levels and reduced taxation on wealthier social classes.[16]In ancient Rome, taxation was primarily levied upon the provincial population who lived outside ofItaly.Direct taxeson Italian land were abolished in 167 BCE andindirect taxeson certain transactions were removed in 60 BCE. The urbanized, populous, and important city of Rome possibly had greater influence on politics than the more dispersed and less prominent provincial population.[17]

Taxation in ancient Rome was decentralized, with thegovernmentpreferring to leave the task of collecting taxes to local electedmagistrates.[2]Typically these magistrates were wealthy landowners. During theRoman Republicfinances were stored inside thetemple of Saturn.Under the reign ofAugustusa new institution was created: thefiscus.At first it only contained the wealth gained through taxes onEgypt;but it expanded to other sources later in Roman history. It also collected wealth from people who died without awill,half of the wealth of unclaimedproperty,andfines.[15]

The ancientRoman census,as administered by the censors, was important for the administration of taxes in ancient Rome. The results of their periodiccensusdetermined the amount of tax a citizen owed. They registered the value of each citizen's property, which determined the amount ofproperty taxthey had to pay.[18]In Roman Egypt, Greeks were entitled to reduced taxation compared to other people in Egypt. These Greco-Egyptian persons were likely the members of a special social group referenced in other Roman documents calledhoi apo tou gymnasiou,meaning "gymnasial group." Difficulty identifying which members of the Egyptian populace were entitled to reduced taxation likely prompted a special census of these groups in the year 4 or 5 CE. Following this census, the number of gymnasial groups pernomewas limited to one and future members of gymnasial groups were required to prove their genealogy.[19]The censors also participated in tax farming through theirauctions;they auctioned off the space of alustrumto the highest bidder in return fortithesand taxes.[20][21][22]Censors had similar duties to a modernminister of finance.They could impose newvectiglia,[23]sell government land,[24]and manage thebudget.

The emperorDiocletianchanged the method of collecting taxes in ancient Rome.[25]He replaced the localoptimateswith a bureaucracy. He established a new tax system known as theCapitatio-Iugatioto try to combat the rampant inflation of that time.[16]This system combined theland rents,known asiugatio,and thecapitatio,which affected individuals. Under this policy,arable landwas divided into different regions according to theiryieldand crop. Allland,income,anddirect taxeswere merged into a single tax.[26]This policy tied the peasantry to their land, and those without land were taxed.[27]Diocletian instituted theaurum oblaticiumand theaurum coronariumwhich taxed landowning senators. He also taxed businessmen with a new tax called thecollatio lustralis.These policies contributed to an improvedaccountingsystem for the Late Roman Empire.[16]

Indiction[edit]

Main article:Indiction

The indiction was a periodic reassessment foragricultural taxesandland taxesused throughoutRoman history.During theRoman Republicthis easement occurred everyfive years;later during theempirethe cycle lasted 15 years, although inRoman Egypta 14-year cycle was used. If the emperors made any change to thetax policyit usually occurred at the beginning of these cycles, and at the end it was common for theEmperorsto forgive anyarrears.[28]

TheChronicon Paschale,a 7th-centuryGreek Christianchronicle, claims that this system was established in 49 BCE byJulius Caesar,although it is also possible it began in 48 BC.[28]It also may have begun in 58 CE whenNeroissued a series of tax reforms.[28][29]The earliest known event associated with this cycle was in 42 CE, whenClaudiusestablished a board ofpraetorsto pursue arrears for it.[28][30]The cycle in Egypt only lasted fourteen years because in Egypt the liability for thepoll taxbegan at the age of fourteen.[28]

Tax farming[edit]

Main article:Publican

Tax farmingis afinancial managementtechnique in which alegal contractassigns the management of arevenue sourceto a third party while the original holder of the revenue stream receives fixed periodic rents from the contractor. This practice was first developed by the Romans.[31]Under their system, theRoman Statereassigned thepower to collect taxesto private individuals or organizations. These private groups paid the taxes for the area, and they used the products and money that could be garnered from the area to cover theoutlay.[32][33]Tax farmers may have been tasked with collecting as much wealth in taxes as possible, with their only limit being the local political rulers who wanted to avoid the potential negative effects of overexploitation on future revenue.[17]During wartime,Publicanisupplied theRoman militaryusing their own personal resources. They would make profit by collecting taxes on the local populace. This tax would be collected bylocal municipal councils.If the council failed to fulfill the quota, a not uncommon occurrence, thefiscuswould provide thepublicanwith the uncollected quantity of wealth and place the council in debt for the expense.[34]Systems of tax farming may have proliferated in ancient Rome due to benefits it provided to the aristocracy of the ancient Roman world, who were not subject to the same high levels of taxation as the rest of the populace.[17]

By the time of the Roman Empire these private people or groups had become known as thepublicani.Although Augustus limited the power of thepublicanisignificantly,[35]the Roman government assumed control of farming indirect taxes under theFlavian dynasty.ByTrajan's reign they controlled the collection of allvectigaliain all regions exceptSyria,Egypt andJudea.[36]

Usage and effects[edit]

Although the taxes levied upon the population, especially the poorer population, were likely very high, it seems probable that the exact amount of tax wealth which reached the state's treasury was lower than the amount collected. As the Roman empire expanded, it required more resources to maintain itself and continue growing, resulting in an increased level of taxation.[25]The Roman government would set a fixed amount of wealth each region needed to pay in taxes, while the magistrates were tasked with determining who would pay the taxes, and how much they would each pay. Certain regions, such as Egypt, paid some taxes in kind. Egyptian farmers supplied portions of their crop yield in tax to the rest of the Roman Empire,[37]where it would then be sold to the populace in other regions and therefore converted into monetary wealth.[38]Keith Hopkins,a British historian and sociologist, has argued that the ancient Roman tax economy contributed to urbanization by creating a system where natural resources were taxed in kind by Rome, supplying resources and trade to the city, and then these goods were sold to bring back wealth to the exporter. Taxpayer money was often abused in ancient Rome. Instead of funding public projects or internal improvements, it was often used for the more selfish pursuits of bureaucrats.[16]Hopkins argues that the tax collection systems of the Roman Empire funneled wealth into an aristocratic class, which was then primarily used to fund theRoman militaryand to maintain the luxurious lifestyle of Roman elites.[38]Emperor Julianstopped the city of Corinth from taxing the city ofArgos,over which they had been given some power, and using that money to fund wild beast hunts.[16]

Throughout much of Roman history the tax burden was almost exclusively laid on the poorest people of the Empire while wealthier bureaucrats could avoid taxation. These systems may have contributed to the concentration of wealth and land in the hands of a small class of aristocrats.[16]Excessive taxation may also have limited the ability of provinces such asEgyptto provide goods to customers.[39]Tax debt was a prevalent issue in Roman Egypt. The EmperorHadrianis recorded to have prided himself on writing off more tax debt than his predecessors. However,Julian the Apostateis recorded to have halted the practice of writing off tax debt to its disproportionately negative effects on the poorer Roman people, who had to pay more immediately than wealthier citizens.[16]

During thelate Roman empirethe level of taxation progressively needed to increase as the Roman empire needed to continue funding the military.[40]Most of the responsibility for taxation fell on the lower classes and especially the farmers. Bureaucrats used their position of authority toevade taxes,leaving the burden of taxation on the poorer citizens. By now, taxes consumed enough produce to risk the peasantssurvival.[41]Emperor Constantine refused to place the empire's revenue back into circulation, thus hurting the economy, and forcing farmers to sell their goods at low prices due to the emperor's economic policies. Preventing them from gathering the funds necessary to meet the high tax burden.[42]People who were unable to bear this burden would have agreed to become indebted tolandlordsin exchange for protection, effectively transforming them from free citizens intoserfs.[43]The poor flocked to these estates, and as they grew the usage of money became increasingly rarer. This crippled the economy and the ability of the military to gather the necessary funds and manpower.[2]The poverty-stricken lower class often turned towardscrime.[35][36]

Heavy taxation made the Roman government appear as oppressors, possibly contributing to the loss of provinces such asAfrica.[42]Germanicincursions forced the emperors to lower tax rates in the year 413. The government of Rome also decreed that for five years, the tax rate ofItalywas reduced by 80%. Despite these reductions, the provinces of Rome struggled to pay their taxes, and the Roman government was unable to receive the funding it needed.[44][45][46]Increased levels ofinflationreduced the value of the money the government received in taxation. The difficulties in receiving proper tax funds impaired the Roman state's ability to adequately fund thearmy.[47]Most Late Roman tax money was used to pay off Germanic peoples.[48]

References[edit]

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