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 solidly based in taxation. Taxation not only caused it, but assisted in providing unity for the disorganized and disagreeing colonies. However, maybe not precisely the way you think. 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 taxation on the colonies were neither unfair nor oppressing on the people. In fact, Americans had it great: we had the help of Britain, the land was rich, businesses thrived, and jobs were widely available. Europe’s social structures did not enchain the citizens and our sons were not conscripted to fight in wars in far-away lands… we had it good. So why? Well, there were many 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 no one quite knew the solution to it (after the American revolution, many colonies such as Canada and Australia found adequately achievable solutions). But at this point in history there was no agreement by the British parliament or American leaders on what could be done to avoid “taxation without representation”. Ben Franklin, unknowingly I presume, complicated the issue. He went over to England as our spokesman and said that internal taxes were bad but external taxes were OK.
By internal taxes, he meant the stamp tax and any other taxes that were paid on transactions in the actual colonies themselves. External taxes, by the colonists’ definition, were taxes such as import taxes that were on transactions that only in part took place within the colonies. They thought import taxes were external to the colonies. Yes, if you’re puzzled about this, you ought to be. It makes almost no sense. Apparently no one understood the connection with import/export taxes and the final prices paid for the products. In other words, import/export taxes affected the “other guy” so they were OK.
OK, said the British parliament. if that’s what you want 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 decided they made a mistake. They saw the flaw of their logic… but it was too late and the issue 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/
