Final answer:
The phrase 'no taxation without representation' signifies that taxes should only be levied with the consent of the people, usually through elected representatives. The American colonists opposed taxation by the British Parliament due to lack of direct representation, sparking resistance actions such as boycotts and the assertion of colonial rights to self-taxation.
Step-by-step explanation:
The phrase 'no taxation without representation' embodies the principle that taxes should not be levied on a populace without their consent, typically through elected representatives. The American colonists, during the lead-up to the Revolutionary War, heavily leaned on this concept. Their argument was based on historical rights enshrined in the Magna Carta and the English Bill of Rights, which emphasized the need for consent to taxation.
Despite being British subjects, the colonists in North America were not allowed to elect representatives to the British Parliament. This lack of direct representation in the legislative body that taxed them led to the accusation that Parliament's imposition of taxes without their consent reduced them to a state akin to slavery, as famously declared by John Dickinson.
Parliament's perspective of 'virtual representation' was not compatible with the colonists' belief in direct representation. James Otis and Patrick Henry were among the vocal advocates who decried taxation without representation as tyranny.
The colonials' acceptance of taxes for trade regulation but not revenue generation stemmed from the belief that Parliament had authority over trade throughout the British Empire as a whole, whereas taxes intended for revenue within the colonies should be decided by locally elected assemblies.