Why did the federal government place a tax on

whiskey?

A A to settle a disagreement over the national

bank

B B to provide more inexpensive loans to

businesses

C C to fund debts assumed by the federal

government

D D to encourage greater trust in the legislative

branch

1 answer

The correct answer is C: to fund debts assumed by the federal government. The whiskey tax was implemented in 1791 as part of Alexander Hamilton's plan to manage the national debt and generate revenue for the federal government. This tax led to the Whiskey Rebellion in 1794, where distillers protested against the tax.