Since ancient times, people have used currencies. As long as structured civilization has existed, there has also been taxation. Although many things have changed over the history of taxation and money, the loose definition is still the same.
Although most people believe that all early civilizations used bartering as their main source of commerce, bartering alone could never sustain the economical needs of the people. Before the introduction of coinage and paper money, other things were monetized and used as a standard measure of value, for example a set amount of grain or perhaps cowry shells.
From the ancient rulers of ancient Egypt, those in charge have been collecting taxes from the people “beneath” them. Taxes have been typically collected by officials employed by the governing body and held a great amount of power and esteem. Taxes have been used for various things throughout the years, including lining the pockets of those in charge, financing wars, and paying for improvements to our communities.
Oftentimes, there were two ways to pay taxes: in cash and in kind. Paying your taxes with cash meant you used coins or paper money to pay. When you paid in kind, you paid with goods, such as livestock or crops. In most societies, the elite paid in cash, while the poorer farmers and peasants paid in kind.
Unlike most societies which collected taxes on a regular basis, ancient Greece only imposed a tax during wartime. Once peace was established, the tax was rescinded and leftover money was refunded to the taxpayers. Tax rates have fluctuated in every civilization to keep up with the needs of the governing body as well as inflation. As inflation increases, tax rates swell.
Taxes are collected by the central government, the local government, or both. When you pay a federal income tax, you are paying it to the central government. When you pay a state sales tax, you are paying it to the state or local government.
People have been avoiding and protesting taxes as long as they have been in existence. When a tax is especially heavy on the taxpayers, discontentment often arises. When this stress is ignored by the governing body, the taxpayers can revolt, rebel, or even try to stage a coup if the situation gets bad enough. All through the history of taxation and money, much bloodshed has occurred due to apparently unjust taxation.
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