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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 of 1765 was not the first attempt to tax the American colonies. Parliament had passed the Sugar Act and Currency Act the previous year. Because tax was collected at ports though, it was easily circumvented.Indirect taxes such as these were also much less visible to the consumer.he Stamp Act Controversy. When Britain repealed the Stamp Act in 1766 â only a year after it had been issued â colonists celebrated in the streets, as this satirical cartoon from 1766 depicts. Something was dreadfully wrong in the American colonies.