The Sugar Act placed a tax on a product coming into the colonies. It was a custom duty, a form of tax used to regulate trade. The colonists always acknowledged Parliament's right to enact custom duties, external taxes. The Stamp Act created a direct tax, an internal tax. It was not intended to regulate trade, but to raise money. It was a direct tax placed on a product and the consumer knew that he/she was paying that tax. The colonists claimed Parliament did not have the right to enact direct taxes because the colonists were not represented in Parliament.
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