The Declaratory Act of 1766 was issued by the British Parliament and gave Parliament the same authority in American colonies as it had in Britain, including the ability to pass laws. It also gave Britain a way to continue taxing the colonists in America.
The Declaratory Act of 1766 was passed in conjunction with the appeal of the Stamp Act, which had hurt trade between Britain and the colonies. The Stamp Act upset the colonists, as they questioned Britain's right to tax them, leading to the popular slogan "no taxation without representation." The Declaratory Act became a way for Britain to save face after the colonies' disdain of the Stamp Act, while also asserting its authority over the colonists.