section_path: Origins/1764–1766: Taxes imposed and withdrawn
section_name: 1764–1766: Taxes imposed and withdrawn
paragraph_text: 1764–1766: Taxes imposed and withdrawn
  
  In 1764 Parliament passed the Sugar Act, decreasing the existing customs duties on sugar and molasses but providing stricter measures of enforcement and collection. That same year, Prime Minister George Grenville proposed direct taxes on the colonies to raise revenue, but he delayed action to see whether the colonies would propose some way to raise the revenue themselves.
  
  Grenville asserted in 1762 that the whole revenue of the custom houses in America amounted to one or two thousand pounds sterling a year, and that the English exchequer was paying between seven and eight thousand pounds a year to collect. Adam Smith wrote in The Wealth of Nations that Parliament "has never hitherto demanded of anything which even approached to a just proportion to what was paid by their fellow subjects at home." Benjamin Franklin would later testify in Parliament in 1766 to the contrary, reporting that Americans already contributed heavily to the defense of the Empire. He argued that local colonial governments had raised, outfitted, and paid 25,000 soldiers to fight France in just the French and Indian War alone—as many as Britain itself sent—and spent many millions from American treasuries doing so.
  
  The British were, however, reacting to an entirely different issue: at the conclusion of the recent war, The Crown had to deal with approximately 1,500 politically well-connected British Army officers. The decision was made to keep them on active duty with full pay, and they had to be stationed somewhere. Stationing a standing army in Great Britain during peacetime was politically unacceptable, so they determined to station them in British America, and have Americans pay them through the new tax. The soldiers had no military mission; they were not there to defend the colonies because there was no current threat to the colonies.
  
  Parliament passed the Stamp Act in March 1765, which imposed direct taxes on the colonies for the first time. All official documents, newspapers, almanacs, and pamphlets were required to have the stamps—even decks of playing cards. The colonists did not object that the taxes were high; they were actually low. They objected to their lack of representation in the Parliament, which gave them no voice concerning legislation that affected them, such as the tax, violating the unwritten English constitution. This grievance was summarized in the slogan "No taxation without representation". Shortly following adoption of the Stamp Act, the Sons of Liberty formed, and began using public demonstrations, boycotts, and threats of violence to ensure that the British tax laws became unenforceable. In Boston, the Sons of Liberty burned the records of the vice admiralty court and looted the home of chief justice Thomas Hutchinson. Several legislatures called for united action, and nine colonies sent delegates to the Stamp Act Congress in New York City in October. Moderates led by John Dickinson drew up a Declaration of Rights and Grievances stating that the colonists were equal to all other British citizens and that taxes passed without representation violated their rights as Englishmen, and Congress emphasized their determination by organizing a boycott on imports of all British merchandise. American spokesmen such as Samuel Adams, James Otis, John Hancock, John Dickinson, Thomas Paine, and many others, rejected aristocracy and propounded " republicanism " as the political philosophy that was best suited to American conditions.
  
  The Parliament at Westminster saw itself as the supreme lawmaking authority throughout the Empire and thus entitled to levy any tax without colonial approval or even consultation. They argued that the colonies were legally British corporations subordinate to the British Parliament. Parliament insisted that the colonists effectively enjoyed a " virtual representation ", as most British people did, since only a small minority of the British population were eligible to elect representatives to Parliament. However, Americans such as James Otis maintained that there was no one in Parliament responsible specifically to any colonial constituency, so they were not "virtually represented" by anyone in Parliament.
  
  The Rockingham government came to power in July 1765, and Parliament debated whether to repeal the stamp tax or to send an army to enforce it. Benjamin Franklin appeared before them to make the case for repeal, explaining that the colonies had spent heavily in manpower, money, and blood defending the empire, and that further taxes to pay for those wars were unjust and might bring about a rebellion. Parliament agreed and repealed the tax on February 21, 1766, but they insisted in the Declaratory Act of March 1766 that they retained full power to make laws for the colonies "in all cases whatsoever". The repeal nonetheless caused widespread celebrations in the colonies.