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 solidly based in tax problems. Taxation not only caused it, but helped unify 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 taxation on the colonies were neither unfair nor oppressing on the people. Actually, Americans had a good life: we had the help of the British empire, our land was rich, business was good, and there were jobs for everyone. Europe’s social structures didn’t limit the citizens and our sons were not conscripted to battle in wars in far-away 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 an issue. The problem was, nobody knew quite what to do about it (following the American revolution, many colonies such as Canada and Australia found adequately achievable solutions). But at the time there was no agreement by the British parliament or American leaders on what should happen to dissolve “taxation without representation”. Ben Franklin, probably without his own knowledge I presume, made the issue worse. He went over to England as our spokesman and told the British that internal taxes were bad 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, according to colonists’ definition, were those like import taxes that were on transactions that only in part occurred within the colonies. They believed import taxes were external to the colonies. Yes, if you are puzzled about this, you ought to be. It makes little sense. 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 worked against the “other guy” so they were OK.

The British parliament complied. if that’s 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 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/