Foosinho
14 Jul 2006, 02:37 PM
I learned something interesting today... the Boston Tea Party isn't exactly what we were taught it was. Or at least what I was taught it was. (Cross-posted from my blog):
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Contrary to what some would have you believe (http://www.usteaparty.com/) - including your general schooling, if my memory of my youth is correct [edit: including the White House (http://www.whitehouse.gov/kids/dreamteam/samueladams.html), which fails to mention that Samuel Adams was a tax collector (http://www.ushistory.org/Declaration/signers/adams_s.htm)!] - the Boston Tea Party was not a revolt against high taxes levied against Americans by our British overlords. In matter of fact, it was prompted by a corporate tax handout (http://www.taxhistory.org/thp/readings.nsf/cf7c9c870b600b9585256df80075b9dd/1bc5839831cd15ee852570dd0061d496?OpenDocument) designed to benefit the East India Company and crush small American (often smuggling) business by exempting EIC from paying export taxes on tea leaving Britain.
Had Lord North left well enough alone, things might have remained relatively calm. But in 1773 Parliament passed the Tea Act. Designed to rescue the ailing East India Company, which was struggling against a crushing debt load, that new legislation granted the company a virtual monopoly over colonial tea sales. Drawing on a huge inventory of unsold tea in its London warehouses, the company prepared to ship 600,000 pounds of tea to the colonies. The company would assign that tea to a few chosen consignees, leaving most American merchants -- including those with a thriving trade in smuggled tea -- completely out of the loop.
Tea exported from Great Britain was usually subject to an export tax, but Parliament agreed to exempt the company from that duty. Lord North again refused to repeal the remaining Townshend duty on tea, still devoted to its symbolic value. But even so, the exemption from export duties would allow the East India Company to sell the tea at rock-bottom prices, undercutting smugglers. American consumers would have enjoyed a windfall: a happy influx of cheap, high-quality British tea.
Instead, they forced ports to refuse shipment, and systematically dumped 342 chests (£10,000 in 1773 money) of tea into the Boston Harbor.
Certainly, there was a general resentment of duties levied by Britain. But those duties had been in place for years. It was the state-sanctioned corporate monopoly enacted by the Stamp Act that undercut colonial importers that provided the spark.
"As American colonists went about their daily affairs in September 1773," Labaree said, "almost all of them ignored the desperate efforts of a few radical patriots to keep alive the spirit of resentment." Only when the Tea Act united antitax feeling with plans for a state-sanctioned monopoly did that resentment again boil over.
Taxes aren't the problem. Unfair tax policies are the problem.
But some tax protests -- including the Boston Tea Party -- have also been infused with a sense of fair play. Americans resent arbitrary and capricious taxes, especially when revenue tools are compromised by special interests. Loopholes and tax preferences are a powerful source of antitax activism.
Hat tip to Best of the Left Podcast (http://www.bestoftheleftpodcast.com/) (you can listen to today's episode - which tipped me to this - here (http://hippiesympathizer.libsyn.com/index.php?post_id=110115#)).
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Interesting, yes? Any thoughts on this?
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Contrary to what some would have you believe (http://www.usteaparty.com/) - including your general schooling, if my memory of my youth is correct [edit: including the White House (http://www.whitehouse.gov/kids/dreamteam/samueladams.html), which fails to mention that Samuel Adams was a tax collector (http://www.ushistory.org/Declaration/signers/adams_s.htm)!] - the Boston Tea Party was not a revolt against high taxes levied against Americans by our British overlords. In matter of fact, it was prompted by a corporate tax handout (http://www.taxhistory.org/thp/readings.nsf/cf7c9c870b600b9585256df80075b9dd/1bc5839831cd15ee852570dd0061d496?OpenDocument) designed to benefit the East India Company and crush small American (often smuggling) business by exempting EIC from paying export taxes on tea leaving Britain.
Had Lord North left well enough alone, things might have remained relatively calm. But in 1773 Parliament passed the Tea Act. Designed to rescue the ailing East India Company, which was struggling against a crushing debt load, that new legislation granted the company a virtual monopoly over colonial tea sales. Drawing on a huge inventory of unsold tea in its London warehouses, the company prepared to ship 600,000 pounds of tea to the colonies. The company would assign that tea to a few chosen consignees, leaving most American merchants -- including those with a thriving trade in smuggled tea -- completely out of the loop.
Tea exported from Great Britain was usually subject to an export tax, but Parliament agreed to exempt the company from that duty. Lord North again refused to repeal the remaining Townshend duty on tea, still devoted to its symbolic value. But even so, the exemption from export duties would allow the East India Company to sell the tea at rock-bottom prices, undercutting smugglers. American consumers would have enjoyed a windfall: a happy influx of cheap, high-quality British tea.
Instead, they forced ports to refuse shipment, and systematically dumped 342 chests (£10,000 in 1773 money) of tea into the Boston Harbor.
Certainly, there was a general resentment of duties levied by Britain. But those duties had been in place for years. It was the state-sanctioned corporate monopoly enacted by the Stamp Act that undercut colonial importers that provided the spark.
"As American colonists went about their daily affairs in September 1773," Labaree said, "almost all of them ignored the desperate efforts of a few radical patriots to keep alive the spirit of resentment." Only when the Tea Act united antitax feeling with plans for a state-sanctioned monopoly did that resentment again boil over.
Taxes aren't the problem. Unfair tax policies are the problem.
But some tax protests -- including the Boston Tea Party -- have also been infused with a sense of fair play. Americans resent arbitrary and capricious taxes, especially when revenue tools are compromised by special interests. Loopholes and tax preferences are a powerful source of antitax activism.
Hat tip to Best of the Left Podcast (http://www.bestoftheleftpodcast.com/) (you can listen to today's episode - which tipped me to this - here (http://hippiesympathizer.libsyn.com/index.php?post_id=110115#)).
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Interesting, yes? Any thoughts on this?