How Did Taxation Affect The United States

By mid-18th century Great Britain as world power was in a kind of an economic crisis that demanded new sources of financing. As this was colonizing power with centralized imperial system it was expected from colonies to finance any war or economic losses. This time, the case was more complex; The Empire was engaged into The Seven Years’ war which took place on different frontiers in New World, Africa and India. In order to overcome the economic crisis caused by the War policy of new taxes was started. This policy of new taxes called the Stamp Tax was imposed on 13 colonies in America. In future this policy of Stamp Act gradually will lead to a war which will result with independent United States of America. Actual radical change of people’s mind in 13 colonies, which will later eventually become United States
Regarding the Stamp Tax government of the Great Britain completed the Seven Years’ War against France with tremendous costs what reflected in doubled national debt. In addition to the doubled debt the Imperial government in the War captured new territories. Those territories were Canada and eastern Mississippi Valley. All those new territories were huge in size, with a lot of new sources populated with natives which were not considered as suitable source of new tax revenues for the Imperial government. In order to incorporate those new territories George Grenville, Prime Minister of Great Britain, came with idea to rise tax revenues from American colonies to finance new territories. Those new territories would be included in the American colonies. The problem also was the fact that people from 13 colonies did not have any kind of a special privileges in territories of Canada and eastern