Everyone is taught in school that the original colonists rebelled against the Crown and fought for independence for a variety of reasons. One of the main reasons being the famous phrase ‘taxation without representation’. This is technically true, the colonists had no official representation in Parliament, similar to the way the Puerto Rico, Guam, or the U.S. Virgin Islands are within our government now. We’re told that this tyranny of imposed taxes on a few select products, tea, paper, and sugar was what led to the Revolution.
That’s even though the tax rates under King George were temporary, and only between 1-2% of your income. Regardless of that, then came the Boston Tea Party, the Intolerable Acts, Lexington and Concord, and a variety of other incidents that started the Revolutionary War.
Obviously, we won, and got our own representation within our own government. That representation was fought for in order to secure low taxation and maintain a small government.
Fast forward over two hundred years of big government to the present where we’re being taxed at upwards of 40%. This graphic is low because it doesn’t consider state and local taxes, with that included it would probably be closer to 60%.
That 1-2% tax rate is enviable by today’s standards. Few people wouldn’t rather pay that low rate than the rate they’re paying now. The tax rates under King George were so incredibly low considering you’d only be paying tax on a few select products.
There was no income tax, property tax, business tax, capital gains tax, payroll tax, sin tax, transfer tax, or Obamacare tax. It sure must have been nice being able to keep so much of your hard earned money and invest it as you saw fit.