Question

What was Hamilton’s rationale for placing a tax on whiskey?
He wanted to impose a penalty on farmers for producing too much whiskey

Answer 1

Hamilton's rationale for placing a tax on whiskey was primarily driven by the need to raise revenue for the federal government. As the Secretary of the Treasury, Hamilton faced a significant national debt from the Revolutionary War and saw the whiskey tax as a means to generate funds. Additionally, Hamilton believed that taxing whiskey would help to increase the revenue base of the federal government and strengthen its financial position.