The Boston Tea Party or How Excessive Taxation Triggered A Revolution In The Americas

Taxation is something that nobody likes, but we all have to face. It's one of the oldest things we have, and it has always been a controversial matter. From the Romans to the modern states, taxes have taken many shapes, they have reached various lands, and they have affected quite a lot of wallets. Today, we explore The Boston Tea Party, what was it, and how an event that changed the course of history started from a taxation dispute.

Origins Of The American Revolution: The Colonies' Courage 

The American Revolution and subsequent independence in 1776 changed the course of history as the world saw the advent of a new, powerful nation that would become an empire. When it comes to culture, nature, business, and quality lifestyle the United States is one of the most advanced nations. In a way, we can say it would be perfect if it weren't for taxation, yet interestingly, this was the main reason for its birth in the first place.

When independence was declared, the patriots represented the ideals of freedom, yet the main trigger of the revolutionary movement was a riot that became known as the Boston Tea Party. 

What Was The Boston Tea Party About

Now, the US is one of the most expensive countries taxation-wise, with a 40% estate tax for non-residents; however, back then, it experienced the same treatment, subject to British taxation.

New England was one of the most important colonies at the time, being the closest port to Great Britain, and thanks to the availability of natural resources like timber. Boston became a prosperous city and one of the most active when it came to the economy.

The region was a hub for business and social activities, and was visited by scholars who gathered in the taverns to share ideas and discuss the new trends. In a way, this was the birthplace of the Boston Tea Party. 

The intellectual environment was strong and ever-growing. As an example, here is where the first public school was created in 1635. Moreover, when Harvard was founded, colonists didn't have to leave for England to access quality tuition. So, they stayed, they gathered, they talked, and soon they became inspired by the dream of a new order. 

It was their highly critical point of view and ample knowledge that allowed them to forge innovative thoughts. This is why we can look back at colonial Boston and find the origins of the American Revolution, like a pulse that was felt around each corner, behind each tile, in the church, in the taverns, at work, and everywhere. Understanding this context is vital to comprehending what caused the Boston Tea Party.

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What Caused The Boston Tea Party: A Response To British Taxation

Parallelly, Great Britain was coming out of an outrageous war. It was the Seven Years’ War, which had cost many lives and required high budgets. Struggling to get money, the Crown saw no better option than just taxing, taxing, and then some more taxing. British taxation soon started to suffocate business initiatives, and the colonists weren't exactly happy.

Riots and conflict arose, and as British taxation increased, so did tensions. Finally, in 1773, the Sons of Liberty ordered a ship from the East India Company, whose cargo was mainly tea, to come back to England. Upon refusal, the dissenters entered the ship, cracked the chests open, and threw the tea into the ocean. 

The Origins Of The American Revolution Tell Us The Same Old Story

What was the Boston Tea Party about? In the end, it was the same old story: people against ominous taxation, British taxation against colonists' rights, and these expectations found themselves channeled by the revolution. Even though the most respected patriots at the time, like George Washington, declared their disagreement with the riot, the Boston Tea Party caused a great impact and ignited the desire for independence in the hearts of the people. It only took a few more years for the dream to come true. 

Taxation’s Influence On Society Tells Us About Its Importance 

In the same way that British taxation helped shape the origins of the American Revolution, taxation shapes everyone's lives. We all pay taxes even if we think we don't. You may not be subject to income tax, estate tax, or withholding tax, but you pay tax every time you go to buy something in a store.

In Panama, it's only 7%, but this is exceptionally low thanks to the country’s pro-business environment. In other regions, VAT can go as high as 21%. 

Interestingly, the United States was born practically by defending itself from ominous tax policies, yet it ended up being famous for this very same reason. It can still be, though, a convenient banking destination for foreigners, and the ideal place to establish an LLC with the possibility of choosing between different legal frameworks.

As for taxation, the best thing one can do is seek quality advice, especially when operating across jurisdictions.

Disclaimer: This article is not based on professional historical research; therefore, it must be taken as a general guideline. Regarding taxation, we recommend always consulting with qualified professionals.

Analyzing the Boston Tea Party, What Was It, And Where Did It Come From?

Understanding what was the Boston Tea Party about helps us look deeper into the origins of the American Revolution and understand the importance of taxes in society. British taxation, American taxation, or whatever kind it may be, it's a part of our lives. The difference will lie in your nationality, the number of structures, the countries where you have residency, tax residency, property, or businesses, and the exemptions that are legally available. Either way, asking for professional advice is a must.

At Mundo, we specialize in international structures like corporations, trusts, and bank accounts as well as real estate. We have an office in Panama, a country with territorial taxation, and many of our experts are based here. Write to us and ask us about Panama, other jurisdictions, and financial services. We'll always be happy to help. 

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