How old are taxes? Older than you think
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For thousands of years, human civilizations have been collecting taxes, in one form or another. From grain to beards to rubber balls, governments always found new ways to collect their due.
Every April in the United States, predictable signs of spring appear: budding flowers, chirping birds, and … taxes. They may be as certain as death, but taxes aren’t a recent phenomenon; they date back thousands of years.
Over the centuries, different governments all over the world have levied taxes on everything from urine to facial hair—and officials accepted payments of beers, beds, and even broomsticks. These payments went to fund government projects and services—from the pyramids of Giza to the legions of Rome.
FIRST TAXES
Taxation has existed for so long, it even predates coin money. Taxes could be applied to almost everything and might be paid with almost anything. In ancient Mesopotamia, this flexibility led to some rather bizarre ways to pay. For instance, the tax on burying a body in a grave was “seven kegs of beer, 420 loaves, two bushels of barley, a wool cloak, a goat, and a bed, presumably for the corpse,” according to Oklahoma State historian Tonia Sharlach. “Circa 2000-1800 B.C., there is a record of a guy who paid with 18,880 brooms and six logs,” Sharlach adds.
Creative accounting of in-kind payments helped some cheat the tax man as well. “In another case, a man claimed he had no possessions whatsoever except extremely heavy millstones. So he made the tax man carry them off as his tax payment.”
PHARAOHS' TAX PREPARATION
Ancient Egypt was one of the first civilizations to have an organized tax system. It was developed around 3000 B.C., soon after Lower Egypt and Upper Egypt were unified by Narmer, Egypt’s first pharaoh.
Egypt’s early rulers took a very personal interest in taxes. They would travel around the country with an entourage to assess their subjects’ possessions—oil, beer, ceramics, cattle, and crops—and then collect the taxes on them. The annual event became known as the Shemsu Hor, or Following of Horus. During the Old Kingdom, taxes raised enough revenue to build grand civic projects, like the pyramids at Giza.
Ancient Egypt’s taxation system evolved over its 3,000-year history, becoming more sophisticated with time. In the New Kingdom (1539-1075 B.C.), government officials figured out a way to tax people on what they had earned before they’d even earned it, thanks to an invention called the nilometer. This device was used to calculate the water level of the Nile during its annual flood. Taxes would be less if the water level was too low, foretelling a drought and dying crops. Healthy water levels meant a healthy harvest, which meant higher taxes.
TAX AMNESTY IN ANCIENT INDIA
In India's Mauryan Empire (ca 321-185 B.C.) an annual competition of ideas was held—with the winner receiving tax amnesty. “The government solicited ideas from citizens on how to solve government problems,” Sharlach explains. “If your solution was chosen and implemented, you received a tax exemption for the rest of your life.” The Greek traveler and writer Megasthenes (ca 350-290 B.C.) gave an astonished account of the practice in his book Indica.
Like most tax reform efforts, the system was far from perfect, Sharlach notes. “The problem is that nobody would have any incentive to ever solve more than one problem.”
RENDER URINE UNTO CAESAR
The Roman emperor Vespasian (r. A.D. 69-79) may not be a household name like Augustus or Marcus Aurelius, but he brought stability to the empire during a turbulent time—partly through an innovative tax on people’s pee.
Ammonia was a valuable commodity in ancient Rome. It could clean dirt and grease from clothing. Tanners used it to make leather. Farmers used it as fertilizer. And people even used it to whiten their teeth. All this ammonia was derived from human urine, much of it gathered from Rome’s public restrooms. And like all valuable products, the government figured out how to tax it.
Some wealthy Romans, including Vespasian’s own son Titus, objected to the urine tax. According to historian Suetonius (writing around A.D. 120), Titus told his father he found the tax revolting, to which Vespasian replied, “Pecunia non olet,” or “Money does not stink.”
ITEMIZATIONS FOR AZTECS
At its height in the 15th and 16th centuries, the Aztec Empire was wealthy and powerful, thanks to taxation. Historian Michael E. Smith has studied its tax collection system and found it to be remarkably complex, with different kinds of items collected at different levels of government.
All taxes made their way to the Aztec central governing body, the Triple Alliance. There they kept meticulous records of who had sent what. Many of these records survive today. The most famous are found in the Matrícula de Tributos, a colorful illustrated registry filled with pictographs showing exactly how many jaguar skins, precious stones, corn, cocoa, rubber balls, gold bars, honey, salt, and textiles the government collected each tax season.
RUSSIA’S FASHION TAX
Widespread use of coins and currency had a leveling effect on taxation systems, but rulers were not above applying some taxation muscle to achieve their ends. In 1698, Russian reformer Peter the Great sought to make Russia resemble “modern” nations in western Europe whose clean, close shaves Peter equated with modernization. After he returned to Russia, the tsar instituted a beard tax on his citizens, who favored beards.
Any Russian man who wished to grow a beard had to pay a tax—peasants paid a small fee while nobles and merchants could pay as much as a hundred rubles. Men who had paid the tax were also required to carry beard tokens wherever they went to prove that they'd paid their taxes for the privilege. Peter the Great’s beard tax did not last. Catherine the Great repealed it in 1772.
Source: National Geographic
By: Editors of National Geographic
Inflation isn’t gone—it’s just quieter. Around 3% feels tame compared to the chaos of the past few years, but that doesn’t mean it’s harmless. For most business owners, small shifts in pricing, payroll, and supply costs have become the new normal—slow, steady pressure that eats into margins one percentage point at a time. But here’s the thing: inflation doesn’t just erode profit. It also creates permission. Permission to reprice. Permission to renegotiate. Permission to rethink how your business makes money. And as we head into year-end—when every business is reviewing budgets, forecasts, and compensation plans—now’s the perfect time to turn inflation from a problem into a strategic opportunity. The Inflation Mindset Shift: From Defense to Offense Most owners treat inflation like a storm to wait out. They hunker down, cut costs, and hope the economy stabilizes. But smart firms? They play offense. Inflation gives you the perfect narrative to reset pricing, refine operations, and re-anchor value with your clients or customers. Think about it: when everything costs more—from raw materials to insurance—people expect prices to adjust. That makes this moment the cleanest window you’ll get to implement changes that were overdue anyway. Step 1: Reprice With Confidence, Not Apology The biggest mistake small businesses make is treating price increases like confessions. “Sorry, but our costs went up.” Instead, reframe it as value alignment: “We’ve upgraded our processes, improved delivery, and invested in technology to serve you better.” Even if your costs are rising, your value probably has too. If your last price review was more than 18 months ago, you’re already behind. Inflation gives you cover to fix that. Step 2: Audit Margins and Cash Flow Before You Budget Before you finalize 2026 budgets, run a true margin audit. Which services or products are still profitable at today’s costs?
Which are borderline or underwater?
Which clients consistently underpay for the value delivered? Then connect that data to your cash flow forecast. A business that plans around real margins—versus assumptions—has control. If you haven’t reviewed vendor contracts lately, this is also your chance to lock in rates before potential tariff shifts or supply cost changes next year. Step 3: Forecast Smarter, Not Just Harder Forecasting isn’t about predicting inflation—it’s about being ready for it. Smart firms use 3-scenario forecasting: Best case: Inflation drops further, demand grows.
Base case: 3% inflation continues, steady but modest growth.
Stretch case: Tariffs increase, costs rise, and cash flow tightens. By modeling each, you build agility—not anxiety—into your business plan. Step 4: Align Compensation and Value Creation Inflation doesn’t just affect costs—it affects expectations. Employees feel it too. As you plan 2026 compensation, think about rewarding value creation instead of just cost-of-living bumps. For example: Introduce profit-sharing to align team success with performance.
Offer flexible benefits like health stipends or hybrid schedules—high perceived value, lower cost.
Communicate transparently about financial goals. Most teams handle reality better than silence. Step 5: Protect Profitability Before It’s a Problem When inflation was at 8%, you could blame it for shrinking profits. At 3%, it’s just math. That means you can’t afford to ignore the incremental hits—subscription creep, silent vendor increases, underpriced legacy clients. The businesses that thrive in 2026 will be the ones that use this “quiet inflation” window to: Trim inefficiencies before they compound.
Rebuild reserves.
Reinvest in tools that save time or improve margins (think automation, AI, or better client systems). The Big Idea: Inflation as a Reset Button You can’t control the economy—but you can control how your business responds to it. Inflation isn’t a crisis anymore. It’s your chance to reset the rules—on pricing, partnerships, and profitability. When you treat inflation as an opportunity, not a threat, you stop playing defense and start leading from strength. Ready to Plan Your 2026 Strategy? Now’s the time to review pricing, forecasting, and compensation plans before the new year begins. If you want to make 2026 your margin expansion year—not another squeeze—contact our firm. We’ll help you analyze your numbers, refine your strategy, and move into the new year with confidence and control.
Growth Feels Great—Until It Doesn’t At first, running your business feels simple: money comes in, bills go out, and if there’s something left over, you’re doing fine. Then growth happens.
More clients. Bigger projects. Higher payroll. Maybe even a second location. Suddenly, cash doesn’t flow the way it used to. You’re booking record sales, but your bank balance looks… thin. You’re working harder than ever, yet the pressure to make next week’s payments feels heavier. Welcome to the paradox of growth: the bigger your business gets, the tighter cash flow can feel. Why Growing Businesses Feel Cash-Poor It’s not bad management—it’s math. As revenue grows, so do: Accounts receivable: Clients take longer to pay larger invoices.
Inventory or project costs: You spend cash weeks (or months) before you earn it back.
Payroll: Growth usually means more people—and payroll hits like clockwork, even when customer payments don’t.
Taxes: Higher profits mean higher estimated payments that pull cash out of your account quarterly.
Growth stretches the timing gap between money going out and money coming in. Without a system to monitor and forecast it, you’re flying blind. The Shift: From Bookkeeping to Cash Flow Strategy Most small businesses start with simple bookkeeping: track what you earned, record what you spent, file the taxes. But once you grow, you need something more— cash flow management that looks ahead, not just backward. That’s where financial professionals make all the difference.
They can help you: Forecast inflows and outflows weeks or months in advance.
Spot cash gaps early—and plan around them.
Build reserves for seasonality or growth spurts.
Model “what-if” scenarios (new hires, equipment purchases, expansions) before you commit. In other words, they help you turn growth from a guessing game into a system. Real-World Example: The Busy-but-Broke Dilemma One of our clients doubled revenue in a year—then almost ran out of cash. Why? Every big new contract required more up-front costs and staff before payments arrived. Once we mapped cash flow month by month, they saw the problem clearly. With a few tweaks—changing invoice terms, adjusting payroll timing, and setting up a short-term credit line—they moved from panic to predictability. The revenue didn’t change. The system did. Bottom Line Growth brings opportunity—but it also brings complexity. What used to fit on a spreadsheet now needs structure, foresight, and strategy. If your business is growing fast but cash feels tight, it’s time to move beyond basic bookkeeping.
Contact our firm today to build a cash flow plan that grows as smart as you do.
Are you ready to make the move? Are you looking for someone to help you grow your business? A CPA firm who cares about not only your business but you as a person? A firm which can bring insight into your business? One that looks out for your best interests while keeping you compliant with all the IRS, state and other financial regulations? If so, we are looking for you! Steven Brewer & Company, CPAs, is brick and mortar office with a strong virtual presence. We are looking for the right clients to join us. Currently we work with over 35 companies in 20 states. We know how to work virtually with our clients. We work to help you understand your business; help you plan for the future and use your business assets in planning for the best results in building your future. If you are looking for all of this, give us call (812-883-6938) or drop us an email (admin@stevenbrewercpa.com) to schedule a meeting to discuss your financial needs. In the meantime, check out our website, stevenbrewercpa.com, to find out more about us.