Farnhamia wrote:Late Republican Rome wrote:Well, ancient Rome had no income tax, and they met their budget most years. Then again, their welfare state was small, too. Just the grain dole, which was supplemented by private donations.
Rome used a head-tax instead. Don't make it out that they never taxed anyone. The Empire also had an extensive ... empire from which to draw funds. And there were periodic financial crises and currency devaluations, too. It wasn't as simple as you make it out.
The head tax was reserved for wars during the Republic. Yes, the tribute from provincials helped, but then Rome also respected their autonomy while protecting them, so it was a good deal. Unless you lived in Asia Province, but several Roman magistrates took action to stop the tax-farming there. One of the few flaws in the system, tax-farming, courtesy of Gaius Sempronius Gracchus.
The financial crises were resolved usually by the peace dividend when the wars ended with plenty of loot.