The Lesson in Tax Practices, Section 7: Tax and America's Revolution
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 not only caused it, but assisted in providing unity for the unorganized and disagreeing colonies. However, probably 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 taxation 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, the land was fertile, business was good, 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-off places… we had it good. So what happened? Well, some 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, no one knew quite what to do about this problem (following the American revolution, other colonies such as Canada and Australia found adequately achievable solutions). However, at the time there wasn't agreement by the British parliament or American leaders on what could happen to avoid “taxation without representation”. Ben Franklin, unknowingly I presume, made the issue worse. He went over to England as our spokesman and said that internal taxes were bad 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 like import taxes that were placed upon transactions that only partially took place within the colonies. They believed import taxes were external to the colonies. Yes, if you’re confused about this, you ought to be. It makes almost no sense. Apparently no one caught on to the connection between import/export taxes and the ultimate prices paid for the products. Essentially, import/export taxes affected the “other guy” so they were OK.
OK, said the British parliament. if that is 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 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/
Tags: accountant, bookkeeping, cpa, income tax, marc gilfillan, NC, raleigh, tax, tax preparation, tax return, taxes