The flaw in the Whiskey Act (or the Whiskey Tax) passed by Congress in 1791 that led to widespread discontent and eventually the Whiskey Rebellion can be summarized as follows:
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Inequitable Tax Burden: The tax disproportionately affected small farmers, particularly those in the western frontier regions, who relied on whiskey production for their income and as a medium of exchange. The tax favored larger distillers and those in more established markets, creating a sense of unfairness among small producers.
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Collection Method: The requirement for tax collectors to collect the tax in person made the enforcement of the tax particularly contentious. Many rural farmers were far from major towns and saw tax collectors as intrusive agents of a distant government. This sparked resentment and opposition.
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Comparison to British Taxes: The Whiskey Tax was reminiscent of the types of taxes levied by Britain before the American Revolution, which had fueled colonial unrest. Many viewed the tax as a continuation of oppressive policies, leading to resistance among those who believed they had fought for their independence from such control.
Due to these issues, the Whiskey Tax became a rallying point for dissent, culminating in the Whiskey Rebellion of 1794, where farmers revolted against the federal government’s authority.