Events form the history which have been influenced by the tax policy issue - Essay Example

? Taxation  Paper type   of Introduction In current modern environment, the world is moving towards 5th generation. People always want to live in safe and healthy environment. The safe and healthy environment only possible when the all the internal systems of a country in controlled in effective manner. For this purposes, governments of different countries have made quality tax rules to run the internal systems in efficient manner. The people pay the money in the form of taxes to governments and governments spend this money to rum the system of their country. The main aim of the taxation system is to provide better services to people. On the other hand, sometimes taxation can produce adverse effects. It is the possibility that the government unnecessary or huge level of taxes form citizens. There are many interesting events in the history that which have been influenced by the tax policy issue. An example of this can be seen in the case of Lady, Godiva. According to the popular legend, Lady Godiva rode naked through the streets of Coventry to protest against her husband oppressive tax system. She also appealed against her husband. Another recent example can be seen in the case of Tea party movement in the United States. The Tea Party movement is a political movement in America that is generally recognized as conventional and libertarian party. This Political movement is also supported by the political candidates. The main goals of this movement are to encourage the government to reduce capital spending and level of heavy taxes. Tea party movement also enforces the government to reduce the tax rate. The voters of Tea party movement think that excessive high taxes are a burden on the citizens of US. Tea party movement refers that the high taxes are the way of legalized robbery. There are two more events form the history is discussed in this essay. The first event is the American evolution and the second event is American civil war. These both events have been influenced by the tax policy issue. These events have been discussed in detail. The first part of the event contains description of the event. At the second part, The Relevance of the event to tax policy has been discussed. Last part contains the personal evaluation that I assessed from these events. American Revolution Description of the American Revolution American Revolution is one of the major events in history that make material influences on the tax policies. Generally, American Revolution was referred to a fight between Britain and America. According to history, the main reason of the American Resolution is the system of taxes that Britain imposed on American colonies. Britain imposed the taxation on approval of the parliament. They did not represent these taxes in the parliament. On the other hand, colonials did not want to pay taxes on their routine import and exports. Some of the biggest merchants also denied paying taxes on their trading. In 1607, these colonies were isolated form its mother country due to the French and Indian war1. The kind sates that, the colonies have ability to take care of their own matters. He argued that the colonials have the rights to settle their own external and internal disputes. In this mean time British are busy in foreign wars and they did not understand the complexity of this matter. At the end of these wars the British imposed taxes on colonies to restore them in previous state. Colonials denied following the new tax system because they thought that it is the violation of their natural rights. They do not have any liability to pay these taxes. They also state argued that these taxes are to pay off the cost of the wars between England and France. There are also other reasons of American Revolution but taxes are those were imposed to pay off the cost of wars acted as the oil on the flame. The people of the colonies did not want to pay taxes without a proper representation. American colonies always wanted to live as an independent nation. For this purpose, they had set their own living styles and cultures. They had also built their own trading relationship with other countries. Colonists paid little level of taxes and did not want any British interference in their own matters. The Americans colonists argued that, the British are treating in unfair manner with them that’s why they wanted to live as an independent entity without paying any taxes to government of England. The Boston tea party is another reason of the American Revolution. The Boston tea party made up because of tea tax. Boston tea party is considered as a turning point of the American history . As it has mentioned above, that British imposed the taxes on colonies to pay off their cost of their French Indian war. In 1773, British had imposed taxes on the tea but the colonists took a serious action and refused to pay any taxes on their tea. That was the time when British though that the colonists will pay the taxes on their tea easily. The colonists fought against the taxes. At that time, no ships were allowed to dock on New York and Philadelphia. At some places the tea was remained in the storage for three years and sold for the financing of American revulsion. Britain had also passed many acts such as sugar act, currency act, and stamp act to generate the revenue form colonies. The Relevance of The American Revolution To Tax Policy American Revolution has a major role in influence of the tax policies. In 1773, British have decided to implement a tricky idea on American colonies. They gave the contract of tea to an Indian company at extremely low rates. There were many reasons to impose the taxes on colonies. Some of them are mentioned below. The tax level in Britain is much higher than the tax level in colonies. According to (Palmer, 1959), colonies paid the capital tax of only 2%-4% of the total capital tax of Britain. On the other hand, the coting in the Britain parliament also forced to impose the taxes on the American colonies. Parliament has passed series of tax acts to help the army in America. According to some estimates, Parliament had continuously introducing new acts because of war condition. Britain had gone under heavy debt and wanted to take the relied with the help of tax payments. Parliament introduced different tax policies such as sugar act and stamp act. In 1767, parliament introduced a Townshend act that imposed the duty on the imports and exports of colonies to collect higher level of revenue. Parliament also imposed stamp act on colonies because the stamp duty in Britain was much higher than in colonies. Britain had the option to collect more revenue form colonies by imposing all these acts. On the other of coin, Colonists had the opinion that they have not any representation in the parliament. So how can parliament impose taxes on them without their representation? In addition, parliament had imposes a restriction on colonies not to print paper money. The economies of colonies damaged in material manner due to this act. After that colonies took certain measure to oppose all these tax policies and started to boycott the goods of Britain in systematic way. Americans colonies had opposed all these acts in efficient manner. The economy of Britain had also effected due to the action s of colonies. They made a boycott of almost all English goods. These boycotts were so successful and large number of traders and merchants forces the parliament to take back their decision of taxes. These boycotts overturned all the tax policies of Britain. This was the stunning event in history that the colonies has successfully made a boycott of all tax polices of Britain and opposed them in efficient manner. Colonists argued that they have not any representation in the parliament and taxation without representation is tyranny. Evaluation of the American Revolution According to my research on this topic, the tax polices those imposed on colonies were in much low portion in comparison with ordinary British citizens. The colonists opposed these taxes because they don’t want to pay the taxes without their representation in parliament. They are also afraid that these taxes would lead to more high taxes upon their people. On the other side, parliament was not agreed to give the representation to colonists in the house. Due to these factors, colonists made many protests. Boston tea party is one of the main protests of colonists. These protest spawned the saying of "No taxation without representation." Colonists also wanted their representation in parliament to oppose new tax system. Sometimes it seems that colonists protested against the tax policies to make their space in parliament. But on the other hand, facts state that they always wanted their independence and protested against all the taxation policies those were made on them by parliament. In short, American Revolution and protests of colonist have made a great influence on the history of taxes. American Civil War Description of Civil War Civil war is one the major event of eighteen century. The term civil war is generally referred to the war in the United States of America. The victims of this war were the people of United States who were beaten up by high level of taxes. This event is also a origin of taxes on individual income. Government imposed the taxes on in the earning on individual person to gain support in the war. These taxes were imposed on the people of United States. Congress passed the act in 1861 to impose the tax on personal incomes. At the end of civil war there was huge level of debt on the country. Congress realized that the current level of is not enough to pay all the debts. They had incurred a huge portion of cost in civil war. Civil war left many effects on the ordinary people. People who were not interested in the war still have to pay heavy level of taxes. Ordinary people were charged in the sense of taxes to pay the heavy portion of war cost. The Relevance of The Civil War To Tax Policy The civil war left many effects on the tax policies. Some of the tax policies that were introduced by the congress in the result of civil war are mentioned below.. Personal Taxes: After the civil war, congress had realized that they are under the burden of heavy debts. Congress imposed the tax on person incomes. The people who earned $600 to $10,000 were taxed 3% on their incomes. The people who had earned above $10,000 annually were taxed at the rate of 5%. This step is taken in emergency to finance the civil war. According to some estimates, government collected over $55m of amount through these taxes during the civil war. At that time, nation was happy to contribute foe the defense of their country. Tax acts: Congress realized in 1862 that federal government need more revenues to payout the debts. They need to generate more funds. For this purpose, Congress passed an act that imposed the taxes on almost all the necessary items. It includes gunpowder, playing cards, leather pianos and etc. In addition, congress imposed the taxes on almost all the professional trades. The new act covered the taxes on all the necessary and routine life items. Congress has also passed internal revenue act in 1862. The main aim of this act is to support the government to pay the interest on debts. At the end of the civil war, the taxes were not repealed immediately. Government charged taxed until the end of 1872. On the other side of coin, the government made different rules and laws about income taxes. Government also introduced a detailed system of the collection of income tax. After that period, government made separate departments to collect the taxes. The taxes are categorized in different categories. For example, taxes form the different professional trades were treated separately from income taxes. Evaluation of Civil War Civil war is one the events those are the base of a new tax arena. After the end of civil war the tax system of United States has entered in new environment. Congress introduced new way of taxes such as income tax. According to my research, at the first step when the taxes were imposed on the citizens to pay out the expense of civil war, the nation was happy they are contributing for the defense of their country. On the other hand, at send stage when the congress realized that current level of taxes are not enough to pay the heavy debts, then they government introduced new tax policies. In the light of new tax policies people were taxed on their all necessary items. At that moment, people felt hectic to pay a huge level of taxes on all the items they need. The civil war an initial step of current advanced tax system because the civil war brought the taxation into new arena. In short, the American Civil War was the biggest piece of government spending up to that point. It saw a massive increase in the size of government, albeit mostly temporary. All of this spending had to be paid for and would add to the US debt. In terms of taxes directly, the Civil War marked the first institution of an income tax in American history. While the income tax would eventually be overturned the idea would later be resurrected by progressives in the late 19th century and early 20th century. References: Gunderson, Cory Gideon. The Boston Tea Party. Edina, Minn: Abdo Pub. Co, 2004. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=140189 WikiAnswers. "What were the causes of the American Revolution?." WikiAnswers. http://wiki.answers.com/Q/What_were_the_causes_of_the_American_Revolution (accessed March 10, 2012). Whately, Thomas, and George Grenville. The Regulations Lately Made Concerning the Colonies, and the Taxes Imposed Upon Them, Considered. London: Printed for J. Wilkie, 1765 Burgan, Michael. The Boston Tea Party. Minneapolis: Compass Point Books, 2000. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=55107 KidsClick! (Project). Boston Tea Party. Worcester, Mass: Worcester Polytechnic Institute, Dept. of Military Science, 2001. Read More