Taxation+and+British+Economy

Economic Policy

 * Virtually no tax exemptions
 * policy of Walpole and the Whigs
 *  Avoid foreign wars as they were harmful to trade
 * remove taxes as far as possible from merchants, manufacturers and put on goods consumed by the masses
 * Walpole removed taxes on foreign exports = to help business community.
 * The wealthy landowners dominated the House of Commons in Parliament; collected taxes as a means to diminish royal influence
 * Only with the Monarchy AND the Parliament working together could the British government raise revenue through taxes and loans to wage war

South Sea Company
>> 1720
 * Management of British national debt had been assigned to South Sea Company; exchanged government bonds for company stock
 * the price of the stock went way up, investors cashed in, and the stock crashed in
 * Walpole and Parliament intervened to find measures to better handle the debt

Effects

 * British credit market secure through regulation of Bank of England (1693)
 * 1733 Walpole presented scheme to House of Commons to expand EXCISE tax= modern sales tax- eventually withdrawn due to public discontent
 * Foreign trade expanded