CRTA WHISKEY TAX

1791 Whiskey Tax

The federal tax on whiskey production proposed by Alexander Hamilton and passed legally by Congress under President George Washington.

Purpose of the Whiskey Tax

To raise money to pay off Revolutionary War debt.

Why Southern Regions Produced Whiskey

Southern farmers distilled crops into whiskey because it was easier to store, transport, and sell.

Profit Difference

One bushel of corn sold for 25¢ but was worth $2.50 when distilled into whiskey.

Reason for Southern Resistance

Farmers believed the tax unfairly targeted their region and industry.

Reaction to Tax Collectors

Farmers refused to pay; those who did were punished by others through property destruction.

Federal Response (1794)

Washington sent 13,000 soldiers to enforce the tax; no real resistance appeared.

Hamilton’s View

Believed enforcing the tax showed the federal government’s strength.

Jefferson’s View

Thought the show of force was unnecessary and self-glorifying.

Was the Tax Valid

Legally valid but viewed by many as unfair to rural farmers.

Citizen Right to Protest

Citizens can protest unjust laws, but protests must remain peaceful.

Government Responsibility

Government should pass fair laws reflecting public consent.

Government Response to Protest

Listen to concerns and use force only as a last resort.

Who passed the law legally and who had the idea?

Congress legally passed the law, and Alexander Hamilton, as Secretary of the Treasury, was the one who proposed it.

Why were southern regions shifting to producing whiskey instead of selling crops?

Southern farmers turned to whiskey because it was easier to transport and store than crops and brought far greater profits.

What was the profit difference between selling crops and whiskey?

Fresh corn earned about 25¢ per bushel, while whiskey made from the same corn sold for around $2.50.

Why were southerners resisting the tax?

They believed it unfairly targeted their region’s economy while other profitable industries were not taxed.

What happened when people did pay the tax?

Other distillers retaliated against them by damaging their property for complying with federal authority.

What size of force did Washington send to enforce the tax?

He sent 13,000 soldiers to the rebellious areas, though no battle occurred.

What was the difference of opinion between Jefferson and Hamilton?

Hamilton viewed the enforcement as proof of federal strength, while Jefferson thought it was excessive and unnecessary.

Did the government have the right to enforce the tax law the way they did?

Yes, the government had the legal right, but many saw the military response as too harsh and disproportionate.

Do citizens have the right to protest a federal law then and now?

Yes, citizens have the right to protest unjust laws peacefully, both then and now.

What responsibility does the government have to pass laws people consent to follow?

The government should make laws that reflect fairness, equality, and the will of the people.

When there is a protest, how should the American government respond?

The government should first listen and negotiate; enforcement or force should be a last resort.