Whisky Rebellion is the event responsible for the unpopular excise tax implemented by the federal government.
Why does federal government implement excise tax?
- Excise taxes are levied on a variety of goods, services, and activities. Depending on the tax, such levies may be imposed on the manufacturer, retailer, or consumer.
- They are typically used to achieve two objectives: raising funds for various public efforts and discouraging certain public behaviors. This is evident in many of the goods subject to excise taxes, such as cigarettes.
- The Whiskey Rebellion occurred in response to an excise tax proposed by Alexander Hamilton, Washington's Secretary of the Treasury in 1791.
- The Whisky Rebellion occurred in 1794, when farmers in western Pennsylvania protested the whiskey tax. This was a "excessive" tax—an internal tax—passed a few years ago to raise extra funds for the national government.
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