Hamilton's rationale for placing a tax on whiskey was primarily to reduce the national debt. The whiskey tax was part of his broader financial plan to stabilize the U.S. economy and generate revenue for the federal government. By taxing whiskey, which was a widely consumed product at the time, Hamilton aimed to raise funds that could help address the country's financial obligations, including the national debt incurred during the Revolutionary War. This tax eventually led to the Whiskey Rebellion, as it was seen by many farmers as an unfair burden.
What was Hamilton’s rationale for
placing a tax on whiskey?
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.
1 answer