Getting Out Of Debt » NC

The History of Taxation Practices, Section 8: Taxation and The Boston Tea Party

GettingOutOfDebt — Mon, 08 Feb 2010 01:24:13 +0000

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

Ah…. now we have a historical event obviously about abusive taxation. Was the Boston Tea Party a protest concerning the British taxation on tea, as we were told? No, not at all. The colonies had already been boycotting English tea for five years before to the Boston Tea Party! They had actually smuggled in Dutch tea and were quite prosperous. There was tea for anyone who wanted it and no British tea tax paid. Obviously, the British didn’t like the boycott. So, the British bypassed the duties at home. The Parliament told British tea merchants to avoid the import tax of shipping the tea to England and then pass the money saved along to the colonies as they sent the tea over and thereby sold British tea at a price that was lower than the smuggled Dutch tea. If you’re feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!

But what people would sell this British tea?

They sold it through loyal British merchants in the colonies. But will the colonists take the cheaper British tea with an included tax? Yes. They bought so much that what ended up happening was loyal British merchants got all the business and the tax was still be given to England. Obviously the colonists didn’t care about the tax that much; they still were receiving more inexpensive tea. However, the non-British MERCHANTS didn’t like the gig. The British merchants, with the assistance of England, had essentially established a monopoly on tea sales. The native merchants feared it would only be a matter of time before additional British enterprises would be established with the same mechanism and they would be forced out of business. Go here if you want help with a modern-day Tax Return in Raleigh, NC.

So, a group of MERCHANTS dressed up as Indians, walked on a vessel loaded with British tea and dumped it into the harbor. Was this a crowning peak in American tax protest? Not at all. The Boston Tea Party was viewed as the wanton destruction of private property at a time when private property was viewed as very important. The event was very looked down upon and did not sit well with the colonies. Ben Franklin was shocked and demanded that full restitution would be paid immediately to the owners of the tea. Anyway, it turned into war.

However, the colonies would soon realize that masses of warships, battalions of redcoats, and cannons were much more terrifying than a few tax collectors. The ironic thing is, America did not lose the war, primarily due to the fact that England realized it was too expensive to wage war so far from home. BUT after the war, America faced huge debts and taxes, and even with representation they were going to be huge.

Keep an eye out for W. Marc Gilfillan’s next chapter in his History of Taxes series: Taxes and Slavery and the Civil War.

http://www.marccpa.com/

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Some interesting stuff -
1. A credit repair Book.
2. Start an eBay business.
3. Trading the FX market.
4. A penny stock list.

Technorati Tags: accountant, bookkeeping, cpa, income tax, marc gilfillan, NC, raleigh, tax, tax preparation, tax return, Taxes

The History of Taxation, Section 9: Taxes, the Slaves, and the American Civil War

GettingOutOfDebt — Sat, 30 Jan 2010 05:40:20 +0000

Raleigh NC Tax Preparation

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

“Slavery – the one cause of the Civil War.” – John Stuart Mill, 1862

Can there be any doubtful thoughts concerning this topic? Certainly the American Civil War was about the slavery issue… wasn’t it? Well actually, one of the greatest popular myths in our history is that the Civil War was started over slavery and that Lincoln, the Great Emancipator, started a bloody war to sever the claims of bondage that shackled over 3 million black Americans. Right before the war, the South had all it could have wanted.

In 1860, Southerners held the Supreme Court and Lincoln and Congress were beginning the process of passing a constitutional amendment to keep slavery for all time! So what happened?

We should move the time back to the year 1832. By 1832 the national debt left from the War of 1812 had been re-paid and Southerners saw no need to keep up the high import taxes that seemed to only raise prices for Southern consumers. Either the South paid high import taxes on imported goods or it bought Northern manufactured goods at excessive prices. Either way, Southern funds ended up in the North. To say the least, the South was not happy with this arrangement. If you are feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!

Consequently, in 1832 a convention was held in South Carolina to get rid of these federal import taxes. The convention decided the tax was unconstitutional and authorized the governor to resist the enforcing of the import taxes instituted by the federal government. It looked like a civil war was in the works. Mild tempers prevailed, however, and the Great Compromise of 1833 reduced import taxes over the subsequent few years to levels the South would tolerate. Go here if you want help with a modern-day Tax Return in Raleigh, NC.

Over the ensuing years, however, Northern corporate and manufacturing interests forced through Congress new taxes that once again oppressed Southern planters and made Northern manufacturers become rich. In 1850, John C. Calhoun, the South’s most outstanding spokesperson, gave a speech to Congress. His speech spoke of 3 wrongs done to the South that could cause secession from the Union and war. The first two involved fears about the gradual decline of power of the South in general and the states in particular.

The third, and really the only solid complaint, concerned taxation. In Calhoun’s eyes, national import taxes was a targeted legislation against the South. Heavy taxation on the South raised money that was used in the North. The focus of economic life in the country was shifting heavily to the North. Calhoun threatened secession if the taxes were not reduced. But what about the slavery issue? Well, in his campaign for the presidency in 1860, Lincoln repeatedly said he would not do anything about slavery in the South. Truly, the vast majority of Northerners didn’t really care about black men in bondage, just as little as how much they worried about the Indian in the West or impoverished illiterate workers in factories. By and large many black slaves received substantially better quality treatment and better compassion than their working-class counterparts in the North. Lincoln, actually, assured Southern plantation-owners that run-away slaves would be caught. The Congress and subsequently the Supreme Court (Dred Scott decision) further affirmed that slavery was here to stay.

However, just as Lincoln was placed in office and Congress assembled in 1861, they enacted more high import tariffs. Slavery wasn’t an issue – higher import taxes were. In his inaugural address Lincoln said he would go get the customs in the South even if there was a secession!

Fort Sumter, at the beginning of the Charleston Harbor, began filling with Union soldiers to enforce the collection of the new taxes. The Civil War began in 1861 when South Carolinians fired on the federal garrison at Fort Sumter. The conflict had been stewing for decades – but it wasn’t over slavery. It was about taxes.

Two years later, Lincoln put into action the Emancipation Proclamation, and then only after several military battles, as a last resort to rally the North to a noble cause. To address the slave issue – most the North cared little about black people in bondage, no more than they thought of Native-Americans to the west and the impoverished uneducated workers in the factories. Ironically, many black slaves got better treatment and greater compassion than their impoverished counterparts in the North.

That’s it for the History of Taxes Series!

http://www.marccpa.com/

Some interesting stuff -
1. A credit repair Book.
2. Start an eBay business.
3. Trading the FX market.
4. A penny stock list.

Technorati Tags: accountant, bookkeeping, cpa, income tax, marc gilfillan, NC, raleigh, tax, tax preparation, tax return, Taxes

The Lesson in Tax Law, Part Nine: Taxation, the Slaves, and the Civil War

GettingOutOfDebt — Sat, 30 Jan 2010 05:40:19 +0000

Raleigh NC CPA

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

“Slavery – the one cause of the Civil War.” – John Stuart Mill, 1862

Could there be a doubtful thoughts about this topic? Of course the American Civil War was about slavery… was it not? Well actually, one of the most popular myths in our history is that the Civil War was started over the slavery issue and that Lincoln, the Great Emancipator, used a terrible war to break the chains of bondage that enslaved over three million black Americans. Right before the war, the South had everything its way.

In 1860, the South held the Supreme Court and Lincoln and Congress were beginning the process of passing a constitutional amendment to keep slavery for all time! What happened?

We should move the time back to the year 1832. By 1832 the national debt left from the War of 1812 had been paid and the South saw no need to continue the exorbitant import taxes which appeared to only jack up prices for Southern consumers. Either the South had to pay high import taxes on foreign goods or it purchased Northern manufactured goods at excessive prices. In either case, Southern money ended up in the North. To say the South wasn’t content with this arrangement would be an understatement. If you’re feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!

So, in 1832 a convention was hosted in South Carolina to get rid of these federal import taxes. The convention declared the tax was unconstitutional and authorized the governor to defy the enforcing of the import taxes instituted by the national government. It looked like a civil war was in the works. Cool heads won over, however, and the Great Compromise of 1833 reduced import taxes over the next several years to an area the South would tolerate. Go here if you want help with a modern-day Tax Return in Raleigh, NC.

Over the next few years, however, Northern corporate and manufacturer interests forced through Congress more taxes that again oppressed Southern planters and allowed Northern Manufacturers to become rich once again. In 1850, John C. Calhoun, the South’s greatest outstanding spokesman, delivered a speech to Congress. His speech spoke of three grievances of the South that may lead to secession from the Union and war. The first two had to do with fears about the gradual decline of power of the South in general and the states as well.

The third, and really the only concrete grievance, was about tax policy. In Calhoun’s view, national import taxes was a class legislation against the South. Heavy taxation on the South raised money that was spent in the North. The center of economic life in the United States was shifting heavily to the North. Calhoun spoke of secession if the taxes were not lowered. But what of the slaves? Well, in his campaign for the presidency in 1860, Lincoln steadily repeated he wouldn’t do anything about slavery in the South. Actually, the vast majority of Northerners did not really care about enslaved blacks, just as little as how much they cared about the Native-American in the West or impoverished illiterate workers in factories. By and large many black slaves got substantially better quality treatment and better compassion than their counterparts in the North. Lincoln, in fact, promised Southern slave-owners that fugitive slaves would be caught. The Congress and subsequently the Supreme Court (Dred Scott decision) continually acknowledged that slavery was here to stay.

However, right as Lincoln was elected and Congress came together in 1861, they enacted new high import tariffs. Slavery wasn’t an problem – higher import taxes were. In his inaugural address Lincoln stated he would collect the customs in the South even if there happened to be a secession!

Fort Sumter, near the beginning of the Charleston Harbor, began filling with Union troops to support the collection of the new taxes. The Civil War started in 1861 when South Carolinians fired on the federal garrison at Fort Sumter. The inevitable had been brewing for years – but it was not over slavery. It was about tax policy.

2 years after that, Lincoln put into action the Emancipation Proclamation, and then only following several military battles, as a last resort to rally the North to a worthwhile cause. With respect to the slave issue – most the North did not care much about black people in bondage, no more than they thought of Indians to the west or poor illiterate workers in the factories. Ironically, many black slaves received better treatment and greater compassion than their impoverished counterparts in the North.

That’s it for the History of Taxes Series!

http://www.marccpa.com/

Some interesting stuff -
1. A credit repair Book.
2. Start an eBay business.
3. Trading the FX market.
4. A penny stock list.

Technorati Tags: accountant, bookkeeping, cpa, income tax, marc gilfillan, NC, raleigh, tax, tax preparation, tax return, Taxes

A Lesson in Tax Law, Section Seven: Taxes and The Revolution

GettingOutOfDebt — Sat, 30 Jan 2010 05:36:18 +0000

Raleigh NC Accountant

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

There has been no other revolution that was more solidly rooted in tax problems. Taxation didn’t just cause it, but helped unify the unorganized and squabbling colonies. However, maybe not precisely the way you might imagine. If you’re feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!

First, the British taxes on the colonies were neither unfair nor oppressive. Actually, Americans had a good life: we had the help of the British empire, the land was rich, businesses thrived, and jobs were widely available. Europe’s social structures didn’t enchain the citizens and our sons were not forced to fight in wars in far-away lands… we had the good life. So why? Well, some missteps and misstatements by both sides. Go here if you want help with a modern-day Tax Return in Raleigh, NC.

“Taxation without representation” was indeed a problem. But no one knew quite what to do about this problem (following the American revolution, many colonies such as Canada and Australia were able to find more achievable solutions). But at this point in history there was no agreement by the British parliament or American leaders on what could happen to avoid “taxation without representation”. Ben Franklin, unknowingly I presume, complicated the issue. He went over to England as our spokesman and said that internal taxes were unacceptable but external taxes were OK.

By internal taxes, he meant the stamp tax and other taxes that were paid on transactions within the colonies themselves. External taxes, by the colonists’ definition, were those such as import taxes that were placed upon transactions that only partially occurred within the colonies. The colonists believed import taxes were external to the colonies. Yes, if you’re confused about this, you ought to be. It makes almost no sense. Apparently no one understood the connection with import/export taxes and the ultimate prices paid for the goods and services. In other words, import/export taxes worked against the “other guy” so they were OK.

OK, said the British parliament. if that’s what you desire we will help and give you whatever it takes to make you happy. So, the British enacted new tariffs, import and export taxes. Then, Americans decided they made a mistake. They saw the flaw of their logic… but it was too late and the situation worsened.

Keep an eye out for W. Marc Gilfillan’s next chapter in his History of Taxes series: Taxes and the Boston Tea Party.

http://www.marccpa.com/

Some interesting stuff -
1. A credit repair Book.
2. Start an eBay business.
3. Trading the FX market.
4. A penny stock list.

Technorati Tags: accountant, bookkeeping, cpa, income tax, marc gilfillan, NC, raleigh, tax, tax preparation, tax return, Taxes

A History of Taxation, Section Eight: Tax Law and The Boston Tea Party

GettingOutOfDebt — Wed, 09 Dec 2009 11:01:16 +0000

Raleigh NC Tax Preparation

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

Ah…. now we have a historical event clearly about oppressive taxation. Was the Boston Tea Party a protest against the British taxation on tea, as we were all taught? No, not one bit. The colonies had continuously been boycotting English tea for 5 years before to the Boston Tea Party! They had instead smuggled in Dutch tea and were quite prosperous. There was tea for all and no British tea tax paid. Obviously, the British didn’t like the boycott. So, the British forgot the duties back home. The Parliament told British tea sellers to avoid the import tax of shipping the tea into England and then transfer the savings along to the colonies as they sent the tea over and thereby sold British tea at a price that was lower than the smuggled Dutch tea. If you are feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!

But who would sell this British tea?

They sold it with the loyal British merchants located in the colonies. But will the colonists take the cheaper British tea even though it included a tax? Yes. So much so that what ended up happening was loyal British merchants were getting all the business and the tax was still be paid to England. Obviously the colonists did not care about the tax that much; they still were receiving cheaper tea. However, the non-British MERCHANTS didn’t enjoy the gig. The British merchants, with the help from England, had basically established a monopoly on tea sales. The colonial merchants thought it was only a matter of time before more British enterprises would be established with the same mechanism and they would be forced out of business. Go here if you want help with a modern-day Tax Return in Raleigh, NC.

So, a group of MERCHANTS who appeared to be Indians, walked on a vessel loaded with British tea and tossed it into the harbor. Was this a crowning peak in American tax protest? No, it wasn’t. The Boston Tea Party was viewed as the senseless destruction of private property at a time when private property was viewed as very important. The event was very looked down upon and did not sit well with the colonists. Ben Franklin was abhorred and told the merchants that full repayment would be paid immediately to the owners of the tea. Anyway, it escalated into war.

However, the colonies would soon realize that fleets of warships, legions of soldiers, and cannons were much more terrifying than a few tax collectors. The ironic part is, America won the war, mostly due to the fact that England realized it was too expensive to wage war so far from England. BUT after the war, America faced astounding debts and taxes, and even with representation they were going to be huge.

Keep an eye out for W. Marc Gilfillan’s next chapter in his History of Taxes series: Taxes and Slavery and the Civil War.

http://www.marccpa.com/

Some interesting stuff -
1. A credit repair Book.
2. Start an eBay business.
3. Trading the FX market.
4. A penny stock list.

Technorati Tags: accountant, bookkeeping, cpa, income tax, marc gilfillan, NC, raleigh, tax, tax preparation, tax return, Taxes