Tuesday, March 22, 2016

Taxation Without Representation

Let me tell you how it will be
There's one for you, nineteen for me
Cos I'm the taxman, yeah, I'm the taxman

Should five per cent appear too small
Be thankful I don't take it all
Cos I'm the taxman, yeah I'm the taxman

If you drive a car, I'll tax the street
If you try to sit, I'll tax your seat
If you get too cold I'll tax the heat
If you take a walk, I'll tax your feet

~Taxman
The Beatles






When you think of important dates in American History, March 22 probably does not come to mind. However, March 22, 1765, was a pivotal date. It's the date when the English Parliament passed the Stamp Act. No, the Stamp Act was not about postage stamps. The Stamp Act required that stamps be purchased and placed on all legal documents and printed materials in the American colonies. This included ship's papers, licenses, wills, deeds, newspapers, other publications, and even playing cards and dice (?).

Some of the revenue would be used to maintain regiments of British soldiers in the the Appalachian area, where there was concern of skirmishes with Native Americans. The Stamp Act also provided that violators of the Act could be tried and convicted without juries in the vice-admiralty courts.

The colonists, however, had not braved cramped boats, stale food and rough seas to incur additional taxes and lose rights. What's more, they had already been hit with the Sugar Act of 1764, which levied duties on imports of textiles, wines, coffee and sugar; the Currency Act of 1764, which caused a decline in the value of the paper money used by colonists; and the Quartering Act of 1765, which required colonists to provide food and lodging to British troops. 

Although the Stamp Act really didn't cost a lot, it was the principal of the thing, and the standard it seemed to set. Previous taxes and duties on colonial trade had been seen as measures to regulate commerce, but the Stamp Act was viewed as a direct attempt by England to raise money in the colonies without the approval of the colonial legislatures. The colonists were concerned that this tax, if not challenged, could lead to more onerous taxes in the future.

For more information about the colonists' view of the Stamp Tax vs. the British view, see The Stamp Act Controversy.

The Stamp Act motivated colonists to take action. The phrase "taxation without representation" was uttered. There were protests and street violence. And, the Massachusetts Assembly invited the legislatures of other colonies to a congress in New York to "consult together on the present circumstances of the colonies." 

See how another colony perceived the Stamp Act -- A Summary of the 1765 Stamp Act -- Colonial Williamsburg.

In October of that year, delegates from nine of the 13 colonies met in New York to discuss a unified colonial response to the Stamp Act. This "Stamp Act Congress" was significant because it was the first unified meeting of the American colonies to respond to British colonial policies. 

The Stamp Act Congress drafted a "Declaration of Rights and Grievances," which stated, among other things that (1) only the colonial assemblies had a right to tax the colonies; (2) trial by jury was a right, and the use of Admiralty Courts was abusive; (3) colonists possessed all the rights of Englishmen; and (4) without voting rights, Parliament could not represent the colonists.

For quick facts on the Stamp Act Congress, see Stamp Act Congress (1765).

The Stamp Act was short-lived. The effect of the Stamp Act was not. Although the British government repealed the tax the next year, the repeal was coupled with the Declaratory Act, a reaffirmation of its power to pass any laws over the colonists as it saw fit. Societies that were formed in opposition to the Stamp Act continued to meet in opposition to what they saw as abusive policies of the British empire. These societies played a large role in the Revolutionary War ten years later.

For a more comprehensive discussion of the Stamp Act, check out Stamp Act.

Now, 250 years later, we still question things that our government (federal, state or local) taxes:

Sin taxes: According to Merriam-Webster, a sin tax is a tax on substances or activities considered sinful or harmful (as tobacco, alcohol, or gambling). Recently, state and local governments have started looking for other "sins" to discourage through tax. See Nation's first soda tax is passed.

Tampon taxes: Sales taxes are typically applied to grocery items and other goods sold in retail stores. Often items that are a "medical necessity" are exempted from such tax. However, most states and local governments do not exempt feminine hygiene products, despite the fact that most women consider them a necessity. See The Tampon Tax Explained.

Other strange or unusual taxes: Until May 1, 2015, the State of Alabama charged a 10-cents-per-deck tax on playing cards. For this, and other strange or unusual taxes, see A Tax on Arrows? Nuttiest New Taxes. Fair warning, this article is from 2012, so some of the taxes (like the Alabama playing card tax), may no longer be effective.


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