What was the flaw in the act passed by Congress that established a tax on whiskey?
It rewarded farmers who grew corn.
It rewarded farmers who grew corn.
It did not spread the tax burden evenly.
It did not spread the tax burden evenly.
It was similar to taxes Britain had proposed.
It was similar to taxes Britain had proposed.
It had to be collected in person by tax collectors.
It had to be collected in person by tax collectors.
It had to be collected in person by tax collectors. This was a major flaw in the act as it created difficulties and resistance from whiskey makers and farmers. The requirement of personal collection by tax collectors made the process more invasive and was seen as an infringement on individual liberties. Additionally, it made the enforcement of the tax difficult and led to widespread non-compliance and resistance.
The flaw in the act passed by Congress that established a tax on whiskey was that it had to be collected in person by tax collectors.
To understand this flaw, let's go over the background. The tax on whiskey was part of the excise tax system implemented by the United States government in the 1790s. The tax was designed to generate revenue to help pay off the country's debts from the Revolutionary War.
The act, known as the Excise Whiskey Tax, mandated that tax collectors physically go to the distilleries and farms to collect the tax on whiskey production. This requirement posed several problems. Firstly, it was challenging for tax collectors to efficiently enforce the tax throughout the vast and largely rural country. Secondly, the collection process was time-consuming and costly, as it involved traveling long distances to individual distilleries and farms. Finally, it created tension and resistance among whiskey producers who viewed tax collectors as government intruders.
This flaw in the tax collection process ultimately led to widespread non-compliance and even violent protests, such as the Whiskey Rebellion. In response to this issue, the government revised the tax in 1801, implementing a less burdensome system that relied more on voluntary reporting by distillers.