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The Lesson in Taxation Practices, Section Eight: Tax Law and The Boston Tea Party

Raleigh NC Tax Preparation

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

Ah…. now we have an event in history obviously about abusive taxes. Was the Boston Tea Party a protest against the British taxation on tea, as we were told? No, not one bit. The colonies had already been boycotting English tea for five years prior to the Boston Tea Party! Instead, they smuggled in Dutch tea and were quite prosperous. There was tea for everyone and no British tea tax paid. Naturally, the British didn’t like the boycott. So, the British bypassed the duties back home. The Parliament told British tea sellers to disregard the import tax of getting the tea into England and then pass the money saved along to the colonies when they sent the tea over and thereby sold British tea at a price lower than the Dutch smuggled tea. 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!

But what people would sell this British tea?

They sold it through loyal British merchants located in the colonies. But would the colonists take the cheaper British tea with an included tax? Yes. They bought so much that what ended up happening was loyal British merchants were getting all the business and a taxes were still being paid to England. However, the colonists didn’t care about the tax very much; they ended up getting more inexpensive tea. BUT, the non-British MERCHANTS didn’t like the gig. The British merchants, with the help from England, had essentially established a monopoly on tea sales. The colony merchants feared it was only a matter of time before more monopolies would be created with the same mechanism and they would be forced out of business. Go here if you want help with a modern-day Tax Return in Raleigh, NC.

So, a group of MERCHANTS dressed up as Natives, boarded a vessel containing British tea and tossed it into the water. Was this a crowning peak in American tax protest? Nope. The Boston Tea Party was looked at as the wanton destruction of private property at a period when private property was viewed as very important. This Boston Tea Party was extremely looked down upon and didn’t sit well with the colonists. Ben Franklin was shocked and demanded that complete repayment would be paid immediately to the owners of the tea. However, it escalated into war.

However, the colonies would quickly find that fleets of warships, battalions of soldiers, and cannons were a lot more terrifying than a few tax collectors. The funny part is, America won the war, mostly because England found it too expensive to fund war so far from England. BUT after the war, America had huge debts and taxes, and even with representation they were enormous.

Keep an eye out for W. Marc Gilfillan’s next chapter in his History of Taxes series: Taxes and Slavery and the Civil War.

http://www.marccpa.com/

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