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Taxes and the American Revolution

Key Takeaways

  • The impact of taxes throughout history has ranged from mundane to major, even leading to the birth of a nation.
  • The American Revolution, celebrated on July 4 with Independence Day, spawned from various social, economic, and political factors. A key catalyst was British taxation of the American colonies.
  • In the Declaration of Independence, the Founding Fathers cited 27 grievances against the British Crown, but the word “taxes” is mentioned just once in this list of grievances, despite playing a critical role in the Revolution.
  • Britain was in great debt following the conclusion of the Seven Years’ War (1756 – 1763) and sought additional tax revenue from the colonies.
    • Over the next several years, Parliament passed acts with tax-related provisions that greatly angered the colonists. These included the Sugar Act (1764), the Stamp Act (1765), the Townshend Acts (1767), and the Tea Act (1773), which culminated in the Boston Tea Party.
    • These acts made some colonists believe that Britain was tyrannical, and that independence was the only option.
  • However, it was not the burden of the taxes that brought the colonists to revolt, but rather the right of Britain to impose taxes on the colonists without their consent.
    • Because the colonists had no representatives in the British Parliament, they could not voice their opinions on new taxes.
    • Influenced by movements like the First Great Awakening (1730s-40s) and Enlightenment ideals like natural law and individual liberty, the colonists would not stand for taxation without representation.
  • The American Revolution was a tax revolt—just not over the burden of taxes, but rather the power to tax.

Transcript

The impact of taxes throughout history ranges from mundane to monumental, including the splitting of one nation and the birth of another.

In the Declaration of Independence, the Founding Fathers cited 27 ways the Crown had infringed on the colonists’ liberty.

The word taxes appears only once in these grievances, and yet, they’re widely recognized as a major catalyst for the American Revolution.

But the colonists’ outrage wasn’t over an oppressive tax burden.

In fact, Brits in the mother country paid far more in taxes than the colonists. So why were our forefathers so fired up over this one particular grievance?

No taxation without representation.

The colonists had no elected representatives in Parliament, and saw every law imposed without their consent as tyranny.

Influenced by the Great Awakening and Enlightenment ideals like natural law and individual liberty, the colonists would not stand for being taxed without their consent anymore.

But Britain was deeply in debt after the Seven Years’ War and needed revenue, so taxed they were.

The Sugar Act, the Stamp Act, the Townshend Acts, and the infamous Tea Act that led to the Boston Tea Party.

Each act further violated the liberty and self-governance of the colonists, escalating the conflict with Britain to the point of no return.

The American Revolution was a tax revolt, but it wasn’t a revolt over the amount of taxes. It was a revolt over the power to tax.

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