Massachusetts Increases State Taxes

Like other states, Massachusetts had relied on paper currency for its expenses, and the currency increasingly lost value. Consequently, in 1786, the state government increased taxes by almost 500 percent and instructed taxpayers to make payment in gold and silver coins. If they failed to do so, they risked having their property seized by the state and spending jail time in debtor’s prison. Seventy percent of property owners were farmers in western Massachusetts who were already in debt, struggling to repay mortgages owed to Boston-based businesses. Additionally, farmers often used barter, not coins, for business deals. Paying the higher state taxes seemed next to impossible for many of them.