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The Stamp Act of 1765 was the first internal tax levied directly on American colonists by the British government. The act, which imposed a tax on all paper documents in the colonies, came at a time when the British Empire was deep in debt from the Seven Yearsâ War (1756-63) and looking to its North American colonies as a revenue source.
The Stamp Act was a tax imposed by the British government on the American colonies. British taxpayers already paid a stamp tax and Massachusetts briefly experimented with a similar law, but the Stamp Act imposed on colonial residents went further than the existing ones.n order to reassert their right to tax the colonies British Parliament issued the Declaratory Act as a reaction to the failure of the Stamp Act as they did not want to give up on the principle of imperial taxation. The Stamp Act was a political and economic failure for the British.