USA HISTORY

Detailed explanation-1: -Britain surmised that the best way to raise funds for their arrearage would be to exact taxes. Few if any taxes raised substantial sums of money. Taxes were imposed both internally and externally to accumulate funds to pay for the war. The stamp tax was levied for just those reasons.

Detailed explanation-2: -The British thought the colonists should help pay for the cost of their own protection. Furthermore, the French and Indian War had cost the British treasury £70, 000, 000 and doubled their national debt to £140, 000, 000. Compared to this staggering sum, the colonists’ debts were extremely light, as was their tax burden.

Detailed explanation-3: -King George III imposed a tax on official documents in American colonies. Included under the act were bonds, licenses, certificates, and other official documents as well as more mundane items such as plain parchment and playing cards.

Detailed explanation-4: -The costs of fighting a protracted war on several continents meant Britain’s national debt almost doubled from 1756 to 1763, and this financial pressure which Britain tried to alleviate through new taxation in the Thirteen Colonies helped cause the American Revolution.