What is Internal external taxation?
An external tax is placed on an item coming into the colony. It is a custom duty levied against a certain product. Example would be a duty on a piece of machinery made in Great Britain. The duty is paid by the shipper but passed on to the consumer by raising the price of the machinery. An internal tax is a direct tax. It is a tax added on to the price of something purchased by the consumer. The Stamp Tax is an example. When you purchased a newspaper, you also had to hand over a bit more money to pay the stamp that was placed on the paper as the tax. The consumer knows he/she is paying a direct tax.
