Earned Income Tax Credit | The History of Taxation, Chapter Seven: Taxes and The Revolution

The History of Taxation, Chapter Seven: Taxes and The Revolution

Raleigh NC CPA

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 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 taxes on the colonies were neither not fair nor oppressing on the people. Actually, Americans had a good life: we had the protection of the British empire, our land was fertile, businesses thrived, and jobs were widely available. 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 knew quite the solution to this problem (following the American revolution, many colonies such as Canada and Australia found more productive solutions). However, at the time there was no agreement by the British parliament or American leaders on what could be done to dissolve “taxation without representation”. Ben Franklin, probably without his own knowledge I presume, complicated the issue. He went over to England as our liaison and told the British that internal taxes were unacceptable 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, by the colonists’ definition, were taxes such as import taxes that were placed upon transactions that only partially occurred in the colonies. The colonists thought import taxes were external to the colonies. Yes, if you’re confused about this, you should be. It makes almost no sense. No one caught on to the connection between import/export taxes and the ultimate 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 desire we will help and give you whatever it takes to make you happy. So, the British created new tariffs, import and export taxes. Then, Americans changed their mind. They saw the flaw of their reasoning… 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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