The History of Tax Practices, Part Seven: Taxation and The American Revolution
December 18, 2009 by Taxcut Editor
Filed under Personal and Business Taxes
W. 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 didn’t just cause it, but helped unify the disorganized and squabbling colonies. However, maybe 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 a good life: we had the help of the British empire, the land was fertile, businesses thrived, and there were jobs for everyone. Europe’s social castes did not limit the citizens and our sons were not forced to fight in wars in far-off places… we had it good. 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 indeed a problem. The problem was, nobody quite knew the solution to this problem (following the American revolution, other colonies such as Canada and Australia were able to find adequately achievable solutions). However, at the time there was no agreement by the British parliament or American leaders on what should be done to avoid “taxation without representation”. Ben Franklin, probably without his own knowledge I presume, made the issue worse. He took a boat over to England as our liaison and told the British that internal taxes were unacceptable but external taxes were OK.
By internal taxes, Franklin meant the stamp tax and other taxes that were paid on transactions within the colonies themselves. External taxes, according to colonists’ definition, were taxes such as 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’re puzzled about this, you ought to be. It makes little sense. No one understood the connection with import/export taxes and the ultimate prices paid for the goods and services. 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 help and give you whatever it takes to make you happy. So, the British enacted new tariffs, import and export taxes. Then, Americans decided they made a mistake. They saw the flaw of their reasoning… however, it was too late and the issue 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/
Related posts
A History of Taxation, Chapter Seven: Taxation and The Revolution
December 10, 2009 by Taxcut Editor
Filed under Personal and Business Taxes
W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
There has been no modern revolution that was more deeply based in taxation. Taxation didn’t just cause it, but assisted in providing unity for the unorganized and squabbling colonies. However, maybe not exactly the way you think. 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 taxation on the colonies were neither not fair nor oppressing on the people. Actually, Americans had a good life: we had the help of the British empire, our land was rich, businesses thrived, and there were jobs for everyone. Europe’s social castes didn’t limit us and our sons were not conscripted to fight in wars in far-away lands… we had the good life. 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 an issue. The problem was, nobody quite knew what to do about it (after the American revolution, many colonies such as Canada and Australia found adequately achievable solutions). But at the time 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 within the colonies themselves. External taxes, according to colonists’ definition, were those like import taxes that were placed upon transactions that only in part occurred within the colonies. The colonists thought import taxes were external to the colonies. Yes, if you are puzzled about this, you ought to be. It makes little 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 folly of their logic… however, 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/
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