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Townshend changed the purpose of the tax plan, however, and instead decided to use the revenue to pay the salaries of some colonial governors and judges. [53] Previously, the colonial assemblies had paid these salaries, but Parliament hoped to take the " power of the purse " [ 54 ] away from the colonies.
The Taxation of Colonies Act 1778 (18 Geo. 3. c. c. 12) was an act of the Parliament of Great Britain that declared Parliament would not impose any duty, tax, or assessment for the raising of revenue in any of the colonies of British America or the British West Indies .
In 1767, Parliament passed the Townshend Acts which added different types of taxes which were used to fund colonial governors and judges. [3] Among the new law's provisions was an import tax on items such as glass, paper, and tea—all of which had to be imported from Britain. [11] The act reinvigorated dissent. [3]
Most of the taxes in the Townshend Acts were repealed in 1770 by the Ministry of Lord North. The passage of the Tea Act 1773 in May 1773, which enforced the remaining taxes on tea, led to the Boston Tea Party on December 16, 1773. Parliament considered this an illegal act because they believed it undermined the authority of the Crown-in-Parliament.
The Stamp Act 1765 required various printed materials in the colonies to use stamped paper produced in London, and was effectively a tax on the colonies. [3] The direct imposition of a tax on the colonies by Parliament was controversial, due to the common English belief that the people could only be taxed by their own representatives.
The duties imposed on many goods were lowered, except for tea. The Parliament also maintained its right to tax the colonies. The fact that the Townshend duty stayed in effect for tea, in addition to the Tea Act, which objected to reducing amounts of tea stored in London warehouses, resulted in the later so-called Boston Tea Party.
On American Taxation" was a speech given by Edmund Burke in the British House of Commons on April 19, 1774, advocating the full repeal of the Townshend Revenue Act of 1767. Parliament had previously repealed five of the six duties of this revenue tax on the American colonies, but the tax on tea remained.
Though the tax burden imposed by the Townshend Acts on the colonies was small, Dickinson argued that the duties were meant to establish the principle that Parliament could tax the colonies. Dickinson argued that in the aftermath of the Stamp Act crisis, Parliament was again testing the colonists' disposition. [1]