We recently celebrated the 4th of July and I couldn’t help but think back to my years in local government where I learned Americans disliked paying taxes – any kind of taxes – Federal, State and Local – but especially local property taxes and that so many candidates who ran for local office proclaimed – “Vote for Me and I Will Lower Your Taxes”.
Disliking taxes is not a new concept; it has been around for hundreds of years; even before there were Americans. The Boston Tea party, that famous event which set the stage for the American Revolution, was sparked because the British passed The Tea Act in May 1773.
Here’s some interesting tea, tax and revolutionary trivia you should enjoy.
The most popular beverage consumed around the world has always been water, the second most popular is tea and beer is third. Coming in a far distant fourth is coffee. The Colonists shared a European culture so tea was their primary beverage at meals and social events; coffee was not even on the table. So the mere thought the British would impose a new tax or raise a tax on tea was deemed outrageous.
Some people believe America is the most taxed nation in the world – not true. Others say the rich pay way too little in income tax – this could be true. What is true is that America has more taxes than any other nation in the world.
After the Revolution – America became the most prosperous nation in the world. Then the 20th century arrived and along came taxes – lots of them. Federal, State and Local officials began to generate revenues from a multitude of taxes, fees and surcharges. Consider the following revenue streams governments currently have in place:
Building Permit Fee, CDL License Tax, Cigarette Tax, Corporate Income Tax, Dog License Fee, Federal Income Tax, Federal Unemployment Tax, Fishing License fee, Food Server License Fee, Fuel Permit Tax, Gasoline Tax, Hunting License Fee
Inheritance Tax, Inventory Tax, IRS Interest Charges, IRS Penalties, Liquor Tax, Luxury Tax, Marriage License Fee, Medicare Tax, Property Tax, Real Estate Tax, Service charge Taxes, Social Security Tax, Road Usage Fees (Truckers), Sales taxes, Recreational Vehicle Tax, School Property Tax, State Income Tax, State Unemployment Tax, Telephone Federal Excise Tax, Telephone Universal Service Fee, Telephone Federal Surcharge, Telephone State Surcharge, Telephone Local Surcharge, Telephone Min. Usage Fee, Telephone State Tax, Telephone Local Tax, Telephone Usage Fee, Utility Taxes, Vehicle License Reg. Fee, Vehicle Sales Tax, Watercraft Reg. Fee, Well Permit Tax, Workers Compensation Tax
What’s ironic is that none of these taxes existed 100 years ago when our nation had no national debt and we had the largest middle class in the world and any Mother who wanted to stay home to raise her children could since one income families lived fairly comfortably.
Now, getting back to tea, taxes and the revolution – remember that dreaded Tea Act imposed by the British back in 1773? Well it never raised any tax or imposed any new tax. Its sole purpose was to help allow the East India (Tea) Company to sell eighteen million pounds of unsold tea sitting in British warehouses to the American Colonists at a significantly reduced price – far lower than anywhere else in the British Empire. The Tea Act was intended provide the Colonists with more tea and save them lots of money; however the King insisted the colonists still pay the full 2% import duty.
So even though the Colonists would now pay less for their tea they were upset because the British did not lower the 2% import duty on the tea they bought. Refusing to pay the 2% import duty, the Colonists in Philadelphia and New York sent the tea ships back to Britain. In Charleston the tea cargos were offloaded but left to rot on the docks and the Governor of Boston decreed no tea ships could dock in Boston. So as the British ships laden with tea anchored in Boston harbor the famous Boston Tea Party occurred … which lit the fuse for the American Revolution and none of it had anything to do with new taxes or the lack of tea.
