He wanted to distribute the taxes to state governments.
Hamilton's rationale for placing a tax on whiskey was to use the tax revenue to reduce the national debt.
Hamilton's rationale for placing a tax on whiskey was to generate revenue to pay off the national debt. The tax on whiskey was one of the key components of his larger economic and financial plan for the United States. By imposing a tax on whiskey, Hamilton aimed to increase the income of the federal government, which would enable them to pay off the debt accumulated during the Revolutionary War. The tax was not imposed as a penalty on farmers for producing too much whiskey or to halt the export of whiskey. Additionally, the intention of the tax was not to directly distribute the taxes to state governments, but rather to provide funds for the federal government to address its financial obligations.
