Most historians and archaeologists place the beginning of the history of taxation and money around the Babylonian civilization who emerged some 4000 years ago on the fertile banks of the river Euphrates. With such a distant past it is impossible to place the date and people exactly, but the emergence of the first token economy is generally thought to coincide with the civilizations rise, and is regarded by many as their main contribution to human consciousness.
Soon after it became used as a token to represent the value of goods and services taxation emerged. This was a way to put a value on services not immediately apparent. For example if you own a road, you cannot charge people the same way as you would a chicken since the costs are ongoing and many. In this case a tax is required.
In more recent history tax has come to be a means to pay not just for use of roads and land, but also a contribution to society as a whole. With the rise of the nation state and the settled economy, tax has in some societies also been used as a way to balance society as a whole. Rather than protecting the rich it has become a means to alleviate poverty.
Money has changed a great deal through the ages, in it’s earliest form, although it was a representation of wealth it would have a definite value in itself to some extent. A golden coin would have it’s value in gold which it would retain even if it were melted down. The advent of paper money in 15th century Italy was another revolutionary move allowing even greater concentrations of wealth.
Today another revolution is occurring as paper and metal tokens are being phased out altogether with advances in technology. It is perfectly possible to live in most developed countries now without ever seeing a banknote or coin since electronic exchange of goods and services has become so much easier removing the physical aspect altogether.
Tax has followed a similar pattern, the role of government and ownership becomes more and more confusing as time goes by. It is hotly debated how much tax should be collected and distributed. This is further confused by the creation of a market for finding loopholes to avoid paying tax by the rich.
The economy is 1000s of years old and taxation is even older. For something that is so central to so many people’s lives, it is amazing how many people have no idea about the history of taxation and money.
Have a look at our article to learn more about the history of taxation and money . You can also get comprehensive information about the benefits of hiring accountants and tips on how and where to find the best accounants London online, now!