What was Hamilton's rationale for placing a tax on whiskey?

Question

(1 point)
• He planned to use the tax to reduce the national debt.
• He wanted to impose a penalty on farmers for producing too much whiskey.
• He wanted to halt the export of whiskey.
• He wanted to distribute the taxes to state governments.

Answer 1

Hamilton's rationale for placing a tax on whiskey was primarily that he planned to use the tax to reduce the national debt. This tax was part of his broader financial plan to stabilize the American economy and generate revenue for the federal government. Therefore, the correct answer is:

• He planned to use the tax to reduce the national debt.