Apologies if I sound retarded, I'm having one of those "yo, how does it really work?" moments. How did Rome generate as much money as it did? For the wealthy, I don't need an explanation. I'm talking about the state. How did the state gain so much money when apparently taxes only made up 5% of the total product.

My train of thought is: Goods are acquired --> Merchants take them to markets --> Goods are sold --> Money acquired by merchants and distributors --> Roman elite get rich --> ??? --> The state acquires money

How does the state make so much money off of trade?

Specify the problem more please. Rom had a LONG history.

Agreed. You need to specify what period of Roman history. How Rome dealt with its finances depends on if you are talking about the early republic, late republic, early empire, and late empire.

The fall of the Roman Empire?

https://fivebooks.com/best-books/ancient-rome-tom-holland/

Plundering conquered peoples

@Plaguetriot, you live in Missouri like me! :D

Well I meant empires in general, not just Rome. How does an empire that does not base its revenue on tax receive the fruits of lucrative trade?

In the Roman sense the wealthy elite essentially was the state. Rich Romans were the ones who built the public stuff. You also see this on the army. The General was personally responsible to pay his troops. The spoils of war were also his.
I am not an expert thou. ;)

Romans had many nice things. Although, I would not like to be there when it was conquered .

The empire fell because of inflation. Giving everyone money, but then raising prices and taxes

Edited 3/9/2020 20:41:40

Tariffs... and the fact that ancient governments didn't spend nearly as much on public services, meaning that 5% could go a lot farther.