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The British turned to taxing the American colonies because
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The actual cost to provide the colonists with protection, infrastructure, and stability was much larger than what they were actually being taxed, and even Englishmen were paying more. They also gathered a huge debt from the French and Indian war and Pontiac's Rebellion (which caused the Proclamation of 1763, because the cost of protection from Indians was too great for British Mercantilistic ideals).
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