USA HISTORY

Detailed explanation-1: -The Tea Act of 1773, designed to rescue the near bankrupt company, was to generate capitol from the colonies by shipping surplus tea there directly and selling it through a network of consignment agents. The intention was to remove the Townshend tea duty (the last remaining “external tax".)

Detailed explanation-2: -The act retained the duty on imported tea at its existing rate, but, since the company was no longer required to pay an additional tax in England, the Tea Act effectively lowered the price of the East India Company’s tea in the colonies.

Detailed explanation-3: -On April 27, 1773, the British Parliament passes the Tea Act, a bill designed to save the faltering East India Company from bankruptcy by greatly lowering the tea tax it paid to the British government and, thus, granting it a de facto monopoly on the American tea trade.

Detailed explanation-4: -The tea tax was kept in order to maintain Parliament’s right to tax the colonies. The Tea Act was not intended to anger American colonists, instead it was meant to be a bailout policy to get the British East India Company out of debt.