What was Hamilton’s rationale for placing a tax on whiskey? (1 point) Responses He planned to use the tax to reduce the national debt. He planned to use the tax to reduce the national debt. 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 halt the export of whiskey. He wanted to halt the export of whiskey. He wanted to distribute the taxes to state governments.

Question

What was Hamilton’s rationale for placing a tax on whiskey? (1 point) Responses He planned to use the tax to reduce the national debt. He planned to use the tax to reduce the national debt. 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 halt the export of whiskey. He wanted to halt the export of whiskey. He wanted to distribute the taxes to state governments.

Answer 1

His rationale for placing a tax on whiskey was to use the tax to reduce the national debt.

Answer 2

Hamilton's rationale for placing a tax on whiskey was to use the tax revenues to reduce the national debt.

Answer 3

Hamilton's rationale for placing a tax on whiskey was to reduce the national debt. To verify this answer, we can look into historical evidence and Hamilton's economic policies during his time as the first Secretary of the Treasury under President George Washington.

Alexander Hamilton, a prominent figure in the early United States government, was responsible for managing the nation's finances and developing economic policies. One of his major objectives was to address the substantial debt accumulated during the Revolutionary War and strengthen the national economy.

Hamilton believed that imposing taxes was essential to generate revenue for the government, especially to repay the national debt. In his Report on Public Credit, Hamilton proposed a comprehensive plan to fund the debt and establish a stable financial system. As part of this plan, he advocated for the imposition of excise taxes on certain products, including whiskey.

The whiskey tax was particularly significant as it targeted a popular commodity produced by farmers in western regions of the country, such as Pennsylvania and Kentucky. The tax proved quite controversial, leading to the Whiskey Rebellion in 1794. However, Hamilton's intention was not to penalize farmers for producing too much whiskey or halt its export; rather, it was primarily a revenue-generating measure to address the national debt.

Therefore, the correct answer is: Hamilton planned to use the tax to reduce the national debt.