The British had reasons for their policy of increased taxation of their colonies. One of the purposes of establishing colonies was so that Great Britain could make money from their colonies. However, as time passed, it was becoming more expensive to operate the colonies. For example, Great Britain fought France in the French and Indian War. This required a significant amount of resources to be spent by Great Britain. After the French and Indian War ended, the British had to protect the colonists from possible attacks by the Native Americans. As a result, Great Britain was no longer profiting from the colonies as they had in the past.

Developing new tax policies would allow Great Britain to recover some of the cost of running the colonies. The British felt that since the colonists were benefiting from the British rule, they should share in some of the cost of running the colonies. For example, the British felt that since the colonists were benefitting from British protection, they should share some of the cost of having the British soldiers in the colonies that were there to protect them.