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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 helped unify the disorganized and squabbling colonies. However, probably not precisely 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 taxes on the colonies were neither not fair nor oppressive. Actually, Americans had a good life: we had the help of Britain, our land was fertile, business was good, 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 lands… 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 no one quite knew the solution to it (after the American revolution, other colonies such as Canada and Australia were able to find more achievable solutions). However, at this 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 went over to England as our spokesman 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 in the actual colonies themselves. External taxes, according to colonists’ definition, were taxes like import taxes that were on transactions that only partially took place within the colonies. The colonists thought import taxes were external to the colonies. Yes, if you are 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 goods and services. In other words, import/export taxes affected the “other guy” so they were OK.

OK, said the British parliament. if that is what you want we’ll play along 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… 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/