W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
No modern revolution that was more solidly based in taxation. Taxation not only caused it, but assisted in providing unity for the unorganized and squabbling colonies. However, probably not precisely the way you might imagine. If you are feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!
First, the British taxes on the colonies were neither unfair nor oppressive. In fact, Americans had it great: we had the protection of Britain, the land was fertile, business was good, and there were jobs for everyone. Europe’s social castes did not limit the citizens and our sons were not conscripted to battle in wars in far-away lands… we had the good life. So why? Well, there were many missteps and misstatements by each side. Go here if you want help with a modern-day Tax Return in Raleigh, NC.
“Taxation without representation” was truly an issue. The problem was, nobody quite knew the solution to this problem (after the American revolution, other colonies such as Canada and Australia were able to find more productive solutions). But at this point in history there wasn’t agreement by the British parliament or American leaders on what should happen to avoid “taxation without representation”. Ben Franklin, unknowingly I presume, complicated the issue. He took a boat over to England as our spokesman and told the British that internal taxes were bad but external taxes were OK.
By internal taxes, he meant the stamp tax and other taxes that were paid on transactions within the colonies themselves. External taxes, according to colonists’ definition, were those like import taxes that were on transactions that only in part occurred in the colonies. They thought import taxes were external to the colonies. Yes, if you are puzzled about this, you ought to be. It makes almost no sense. No one caught on to the connection between import/export taxes and the final prices paid for the products. Essentially, import/export taxes affected the “other guy” so they were OK.
The British parliament complied. if that is what you desire we’ll play along and give you whatever it takes to make you happy. So, the British enacted new tariffs, import and export taxes. Then, Americans changed their mind. They saw the flaw of their reasoning… but it was too late and the situation worsened.
Keep an eye out for W. Marc Gilfillan’s next chapter in his History of Taxes series: Taxes and the Boston Tea Party.
http://www.marccpa.com/