The Tax
Alexander Hamilton
In 1790, the newly established federal government of the United States needed to establish itself. The Revolutionary War had accumulated a massive national debt that needed to be paid off as soon as possible. As part of Alexander Hamilton's new economic plan for paying debts of the states, the House approved a bill that established an excise tax on all distilled spirits. The tax was mainly to pay off the national debt, which was around $60 million after Hamilton's idea to assume the state debts had been approved.
The tax originated out of the government's need to pay bond holders, and because other taxes were raised as high as the government dared. The tax specifically was on domestically distilled spirits, most notably whiskey. It was the first tax of its kind on a nationally produced domestic product. A lesser, more extreme reason for the tax was that it supported some social reformers who hoped that the tax would raise public awareness of the harmful effects of alcohol, although this did not happen in the slightest.
The tax originated out of the government's need to pay bond holders, and because other taxes were raised as high as the government dared. The tax specifically was on domestically distilled spirits, most notably whiskey. It was the first tax of its kind on a nationally produced domestic product. A lesser, more extreme reason for the tax was that it supported some social reformers who hoped that the tax would raise public awareness of the harmful effects of alcohol, although this did not happen in the slightest.