What was Hamilton’s rationale for placing a tax on whiskey?(1 point)
Responses
He wanted to halt the export of whiskey.
He wanted to halt the export of whiskey.
He wanted to impose a penalty on farmers for producing too much whiskey.
He wanted to impose a penalty on farmers for producing too much whiskey.
He wanted to distribute the taxes to state governments.
He wanted to distribute the taxes to state governments.
He planned to use the tax to reduce the national debt.
He planned to use the tax to reduce the national debt.
Hamilton's rationale for placing a tax on whiskey was to use the tax revenue to reduce the national debt.
The correct answer is: He planned to use the tax to reduce the national debt.
To determine Hamilton's rationale for placing a tax on whiskey, we can look at historical context and Hamilton's economic policies. Alexander Hamilton, the first Secretary of the Treasury of the United States, faced the challenge of stabilizing the country's finances after the American Revolution.
The tax on whiskey, also known as the Whiskey Excise Tax, was implemented in 1791 as part of Hamilton's broader fiscal plan. Hamilton believed that the United States needed a strong central government with a stable and sustainable financial system.
One of Hamilton's main goals was to reduce the national debt. By imposing taxes, including the tax on whiskey, he aimed to generate revenue for the federal government. This revenue would then be used to pay off the country's debt and establish economic stability.
In conclusion, Hamilton's rationale for placing a tax on whiskey was to use the generated revenue to reduce the national debt and ensure the financial stability of the United States.