FreeCol:Colopedia.concepts.taxes.description/en

Early in the game, the Monarch does not levy any taxes on your income. Over time, however, the Monarch will be sure to increase sales taxes for a number of reasons that you may find more or less convincing. Every time the Monarch proposes to increase taxes, you may refuse. In that case, a particular type of goods will be boycotted, which means that you will no longer be able to buy or sell that type of goods in Europe, and up to one hundred items of that type of goods will be destroyed by enraged colonists in one of your colonies. Boycotts can be lifted by paying your tax arrears (a costly business), or by the election of Jacob Fugger to the Continental Congress.