As Britain expanded its colonial territories, it increasingly challenged other powers throughout the world, especially in the New World. (The term of the United Kingdom of Great Britain came into existence in 1707, when the governments of England and Scotland were united; the term British came into use to refer to both English and Scots.) In 1763, at the end of the Seven Years’ War, which had been fought mainly against the French, Great Britain had become the world’s greatest colonial power. In North America, it now controlled Canada and the lands east of the Mississippi. The British colonies in North America grew rapidly, not only in territories but in population.

However, with military victories and territorial expansion came a lot of challenges and problems for the British. First, the Seven Years’ War had been so costly that Britain was now in deep debt and urgently seeking ways to increase revenue. As it turned its eye on North American colonies for taxation, it met with strong resistance. Secondly, to protect newly gained territories, it had to station a large number of troops in North America, causing fear and resentment among the colonists. Finally, the Americans and British had different conceptions about the British colonies. The British wanted a single empire with its own parliament having total authority over its colonies throughout the world. The Americans, in contrast, had their own representative assemblies. They believed that neither king nor Parliament should interfere in their internal affairs and that no tax could be levied without the consent of their own assemblies.

As the gap between the two sides grew, the War of Independence eventually broke out. Though the fuse of the war was long and complex, its spark was taxation. The eight years of hard-fought war led to the American independence and the creation of a democracy.