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 Act resulted in violent protests in America and the colonists argued that there should be “No Taxation without Representation” and that it went against the British constitution to be forced to pay a tax to which they had not agreed through representation in Parliament.

Detailed explanation-3: -The war nearly doubled the British national debt, from £75 million in 1756 to £133 million in 1763. Interest payments alone consumed over half the national budget, and the continuing military presence in North America was a constant drain.

Detailed explanation-4: -The British gain a large amount of land from the French at the end of the French and Indian War. Since it was expensive to have soldiers in North America the British government began taxing the colonists to pay for these soldiers. The American colonists were upset by the taxes.