Final answer:
The American colonists protested against "no taxation without representation" because they believed only taxes levied by their own elected representatives were legitimate. They accepted taxes imposed by Parliament to regulate trade but opposed those purely for revenue raising. The lack of direct representation in the British Parliament was at the heart of the colonists' grievances.
Step-by-step explanation:
Understanding the Colonial Perspective on Taxation
The American colonists' phrase "no taxation without representation" was based on the principle that taxes should only be levied by elected representatives. The colonists felt it was their right as English subjects to have a say in the taxes they were required to pay. This concept was grounded in historical documents like the Magna Carta and the English Bill of Rights, which espoused the notion that taxation required consent from the governed. However, the colonists were not granted the opportunity to elect representatives to the British Parliament, prompting them to argue that without direct representation, imposed taxes were a violation of their rights.
The British Parliament found it difficult to comprehend this argument because under British law, including colonies, all subjects were supposed to obey Parliament's laws. Even those who did not have the right to vote were said to have virtual representation, as it was believed that the representatives in Parliament took into consideration the interests of all British subjects. This concept was unsatisfactory to the colonists who insisted on a direct representation.
Colonists accepted Parliament's right to impose taxes on trade for regulation purposes, but strongly opposed taxes levied purely to raise revenue. The latter was seen as a means to make the colonies financially dependent on the Crown, removing the influence colonial assemblies previously exerted over their own affairs, particularly with regards to the payment of officials' salaries—a lever they called "the power of the purse." Hence, the colonists believed that internal taxes should be decided by their own legislature where they had actual representation.