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Question: What is the difference between internal and external taxation!?
during the american revolution- and what would be an example of each!?
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Best Answer - Chosen by Asker:
An external tax is placed on an item coming into the colony!. It is a custom duty levied against a certain product!. Example would be a duty on a piece of machinery made in Great Britain!. The duty is paid by the shipper but passed on to the consumer by raising the price of the machinery!. An internal tax is a direct tax!. It is a tax added on to the price of something purchased by the consumer!. The Stamp Tax is an example!. When you purchased a newspaper, you also had to hand over a bit more money to pay the stamp that was placed on the paper as the tax!. The consumer knows he/she is paying a direct tax!. Www@QuestionHome@Com

An internal tax would be one that the colonists imposed upon themselves for the common good of the colony!. It would be used for roads, schools and that sort of thing!. An external tax is one that was imposed by Great Britain - such as the infamous tea tax - that goes directly into the coffers of the mother country and does no good for the colonists or the colony!. Www@QuestionHome@Com