Why did the Dutch Republic become heavily taxed during its period of prosperity?

During the Dutch Golden Age, the United Provinces became one of the most heavily taxed populations in Europe primarily due to the immense economic burden of repeated wars.1

While the republic generated significant wealth through its dominance in European trade and shipping, these funds were frequently diverted to finance military conflicts. Initially, the government attempted to generate revenue by taxing the transit trade moving in and out of the country. However, as England and France adopted mercantilist policies and increased competition, the Dutch could no longer safely raise transit taxes without risking their market position.1

Consequently, the tax burden shifted toward the consumer. The implementation of excise and various indirect taxes resulted in the Dutch cost of living becoming one of the highest in Europe. This fiscal pressure was exacerbated over time as the republic became exhausted by long land wars, eventually contributing to its decline in the 18th century.12