In ancient times, taxes were not as prevalent as they are today. As societies have advanced, so have their forms of government. The earliest taxes were mainly placed on imports. This was because it was fairly simple to track imports from other nations. A government from an undeveloped nation could derive revenue from port taxes and other forms of taxes on trading. Later, consumption taxes, taxes placed on individual goods and services, would develop. As governments evolved, head taxes and land taxes were imposed. In order to administer taxes, governments had to develop systems of accounting, surveying and assessment.

CS Question #1: Why does a government collect more taxes, rather than less, as a society develops?

One of the most remarkable administrative accomplishments of the Middle Ages was the compiling of the Doomsday Book in A.D. 1086. The Doomsday Book, commissioned by William I, was a detailed survey of all the land holdings, tenants, subtenants and values of the estates of England. The survey was called "the description of England" by its contemporaries and is in modern times often called the "Doomsday Book." Its title comes from the popular British use of the word "doomsday" to describe the day when individuals face the record from which there is no appeal; in other words, it is the final account. William I wanted to levy taxes on the use of his lands; however, first a proper accounting of his holdings had to be made. The Doomsday Book includes elaborate lists of all the manors and their holders and then details each manor's dimensions, plowing capacity, number of workers, mills, fishponds and other resources. Finally, each manor's value in pounds is given.

CS Question #2: What results of the Doomsday Book are still present today?

During the 12th century, 200 years after the creation of the Doomsday Book, there was much turmoil in England. In order to finance the Third Crusade and to pay ransom to the Holy Roman Empire, King John had imposed heavy taxes on properties and holdings. A political quarrel with the Pope prompted King John to heavily tax the Church, which owned massive holdings in land. This made him politically weak with respect to the barons and other landowners. His political position crumbled further after military losses to the French.

In 1215, under threat of civil war, King John signed the Magna Carta. The Magna Carta was an agreement to limit the powers of the king. It created an early parliament and placed the administration of taxes on a more local level. Through history, the Magna Carta has had a resounding influence on later forms of Western government. In fact, the right of habeas corpus is directly rooted in the Magna Carta. The Magna Carta also established the ideal of representation in government for taxed citizens and landholders.

CS Question #3: How has the Magna Carta helped us today?

The American Revolution had many deeply rooted causes. The American colonies had a long list of grievances with England, but one of the most important was the issue of taxes. In 1767 the British Parliament passed the Townshend Acts, imposing a tax on various goods and services imported into the American colonies. The tax generated such an uproar in the colonies, however, that the Townshend Acts were repealed three years later. Yet a tax remained on tea.

The tea tax was designed with two ideas in mind. The first reason for the tea tax was to demonstrate England's right to extract taxes from the colonies without colonial approval. The second purpose of the tax was to create a monopoly to help support the financially troubled East India Company. In many American ports, agents resigned or canceled orders and merchants refused consignments. In Boston, Royal Governor Thomas Hutchinson was determined to enforce the taxes placed upon the colonies by England. He allowed three ships to port in Boston Harbor and their crews to unload the cargo and collect all the appropriate duties. Once citizens got word of the ships in port, they dressed as Native Americans, marched to the ships and dumped their cargoes into the bay. The group now known as the Boston Tea Party destroyed 342 cases of tea with an estimated value of 18,000 pounds. This event started the call of "no taxation without representation" and eventually led to the American Revolution.

CS Question #4: How did the Boston Tea Party affect our tax system today?

Further Thought:

1. What is the meaning of the phrase "no taxation without representation"?
2. How do taxes on imports affect an economy?
3. Research the administration of taxes in the third world, transitional world, and industrialized world. How do they differ?