East India Company confusion

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  • #15103
    brettcaudle711
    Participant

    How did the British receive taxes from the tea that the East India Company had? Who’s tea was it to begin with? Were the colonists upset that the tea being imported was taxed at some earlier point? For some reason I’m confused about this.

    #15104

    The British owned the East India Company. It was a state corporation, which is why the Parliament wanted to monopolize the tea trading using that company. The colonists were upset that the British were NOT taxing that tea and allowing only select merchants to sell it while all other tea was taxed. This is why many of the men of the founding generation warned against state corporations, like the Bank of the United States, and why they insisted that the Constitution did not give the central government the authority to charter such institutions (they were correct; this issue was even discussed in Phil in 1787 and was outright rejected by the delegates to the Convention).

    #15105
    brettcaudle711
    Participant

    Why would the British government want a monopoly for the East India Company if they got no tax revenue from it?
    Were the colonies importing all their tea from Great Britain? Why not just create a monopoly at home in GB instead of the East India Company?

    Thanks for the help!

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