What was Hamilton's rationale for placing a tax on whiskey? A. he wanted to distribute the taxes to state governments. B. he planned to use the tax to reduce the national debt. C. he wanted to halt the export of whiskey. D. he wanted to impose a penalty on farmers for producing too much whiskey.

Question

What was Hamilton's rationale for placing a tax on whiskey?  A. he wanted to distribute the taxes to state governments.  B. he planned to use the tax to reduce the national debt.  C. he wanted to halt the export of whiskey.  D. he wanted to impose a penalty on farmers for producing too much whiskey.

GPT-4o mini · Answer

B. he planned to use the tax to reduce the national debt.

Alexander Hamilton, as the first Secretary of the Treasury, proposed the whiskey tax as a means to generate revenue for the federal government, which was necessary for addressing the national debt incurred during the Revolutionary War. The tax on whiskey was part of Hamilton's broader financial plan to stabilize the country's economy.