A History of Tax Law, Section Seven: Tax Law and America’s Revolution
Posted by Tax Man - 08/12/09 at 01:12 pmW. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
No other revolution that was more solidly based in tax problems. Tax issues not only caused it, but assisted in providing unity for the unorganized and squabbling colonies. However, maybe not exactly the way you might imagine. If you’re 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 not fair nor oppressing on the people. Actually, Americans had a good life: we had the help of Britain, the land was fertile, business was good, and there were jobs for everyone. Europe’s social structures did not enchain us and our sons were not forced to battle in wars in far-off places… we had it good. So what happened? Well, some missteps and misstatements by both sides. Go here if you want help with a modern-day Tax Return in Raleigh, NC.
“Taxation without representation” was indeed a problem. But nobody quite knew the solution to this problem (following the American revolution, many colonies such as Canada and Australia found adequately productive solutions). However, at the point in history there wasn’t agreement by the British parliament or American leaders on what should happen to dissolve “taxation without representation”. Ben Franklin, unknowingly I presume, complicated the issue. He took a boat over to England as our liaison 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 in the actual colonies themselves. External taxes, by the colonists’ definition, were those like import taxes that were on transactions that only partially took place in the colonies. The colonists believed import taxes were external to the colonies. Yes, if you are confused about this, you should be. It makes almost no sense. Apparently no one understood the connection between import/export taxes and the ultimate prices paid for the products. In other words, import/export taxes worked against the “other guy” so they were OK.
OK, said the British parliament. if that’s what you desire we will 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 got worse.
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/
