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Question
supposed to raise revenue, or income, for the british government.
but, the molasses act failed to raise money. rum distillers in new england continued to
import cheap french molasses by smuggling, or bringing it in illegally without paying the
tax.
several different groups benefited from smuggling molasses into the colonies. match each
group with how it benefited from smuggling.
new england rum distillers british tax collectors
french molasses sellers
group how the group benefited from smuggling
could continue to sell their
molasses at a lower price than
british molasses sellers
could avoid paying for taxed
molasses, which was more
expensive
could make money from bribes, or
illegal payoffs, in exchange for not
collecting the tax
- New England rum distillers: They wanted cheaper molasses for rum production. Smuggling let them avoid the tax on molasses, so they could use cheaper (untaxed) French molasses instead of more expensive taxed ones. So their benefit is "could avoid paying for taxed molasses, which was more expensive".
- British tax collectors: If they allowed smuggling (by not collecting the tax), they could get bribes. So their benefit is "could make money from bribes, or illegal payoffs, in exchange for not collecting the tax".
- French molasses sellers: Since New England distillers were smuggling their molasses (avoiding British tax), French sellers could sell their molasses at a lower price than British sellers (because there's no tax added to French molasses in this smuggling scenario). So their benefit is "could continue to sell their molasses at a lower price than British molasses sellers".
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- New England rum distillers: could avoid paying for taxed molasses, which was more expensive
- British tax collectors: could make money from bribes, or illegal payoffs, in exchange for not collecting the tax
- French molasses sellers: could continue to sell their molasses at a lower price than British molasses sellers