USA HISTORY

MAKING OF A NEW NATION 1776 1800

THE WHISKEY REBELLION

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Why did Hamilton recommended a federal excise tax on whiskey?
A
To pay off the the nation’s new debt.
B
To get farmers our of debt.
C
to get states out of debt
D
None of the above
Explanation: 

Detailed explanation-1: -In 1790, Treasury Secretary Alexander Hamilton pushed for the federal government to take over that debt. He also suggested an excise tax on whiskey to prevent further financial difficulty.

Detailed explanation-2: -The “whiskey tax” became law in 1791, and was intended to generate revenue for the war debt incurred during the Revolutionary War. The tax applied to all distilled spirits, but consumption of American whiskey was rapidly expanding in the late 18th century, so the excise became widely known as a “whiskey tax".

Detailed explanation-3: -The tax on whiskey led to a rebellion. In response, Hamilton called for a show of strength. He convinced Washington to raise an army of 13, 500 soldiers to suppress the rebellion.

There is 1 question to complete.