1. The excise tax placed on whiskey to pay for the national debt was justified by the benefits principle. The tax was put in place to pay back debts that America had acquired during the revolutionary war, essentially by paying the tax the people were paying for their independence. In theory, the excise tax on whiskey should have helped pay off the national debt, however; the entire process was corrupt. The bonds that were being sold, were bought up by “speculators with inside knowledge of the plan” and exploiting the uneducated. This meant that a lot of important members of the government were going to make enormous amounts of money when the government paid them back. In order for this to happen, the excise tax was imposed on whiskey.
2. The
The whiskey Rebellion Witten by Thomas P. Slaughter talks bout a rebellion that setup a precedent in American history. It gives us the opportunity to really comprehend this rebellion that thanks to fast action from the Federal government didn’t escalate to a more serious problem like civil war. The book the Whiskey Rebellion frontier of the epilogue to the American Revolution captures the importance and drama of the rebellion. The book is divided into three sections context, chronology and sequence. In the first section Slaughter explain the reason why the taxes was needed in the first place. According to Anthony Brandt in his article of American history name “Rye Whiskey, RYE Whiskey” Alexander Hamilton, secretary of the
·Hamilton’s financial program not only sparked an angry political debate in Congress but also helped ignite a civil insurrection called the Whiskey Rebellion
The 18th amendment had made it illegal to manufacture, sell, transport, import, or export drinking alcohol, but this didn't mean there was no alcohol in the US. The Prohibition Unit of the Bureau of Internal Revenue, was in charge of enforcing prohibition. The force was made up of 3,000 to 3,500 men. The men had to ensure that the 18th amendment was abided by, but there were problems. On the Pacific coast there was more miles of border than there were men. This allowed for smugglers from Mexico and Canada to become successful at smuggling alcohol into the US. On the other side of the county, the Atlantic coast, the force, was not having an easier time. In New Jersey and New York, smugglers would arrive at the coast but be anchored outside the 3-mile limit, thus ensuring that the government could not intervene. When night came the smugglers would make their deliveries by motor speed boats. (Document C) It is stated in (Document E) that If all the alcohol that was being sold illegally was sold legally there would be enough to pay the local and national debt and still have a good amount left over, so why keep the prohibition if it was doing more damage than good to the
The power to tax is key to a successful government. If a government is to act it needs the means to do so. The Articles withheld the power of taxation from Congress and gave it to the local governments. Congress could only appeal to the states for money. Unsurprisingly, the states did not respond with any of the requested money. This was a serious problem because the U.S. was in an incredible amount of debt as a result of the Revolutionary War. If money cannot be collected, how are debts to be paid? Some in Congress believed the problem could be solved by printing more money. However, this strategy only led to inflation, which weakened the economy furthe...
September 1791, Robert Johnson was one of the many attacked for being a tax collectors, which are collecting the tax on distilled liquor. This tax is the first federal tax on American products. Gi...
Although both the coming and the arrival of the Great Depression did have some influence over the decision to repeal the Eighteenth Amendment, other factors played a part – most importantly the simple fact that prohibition didn’t work. In the early 1920s and throughout the 1930s America suffered through a period of economic decline, and because of this, the government in particular, was in need of funds to fuel its weakening economy. Taxation on alcohol would contribute towards the resources for relief, and prevent higher taxes in other areas of business which would only compound the situation. Each year the government was missing out on a sum of around $500 million which would be brought in by a tax on alcohol, and would significantly help America during the crisis. As well as this, an end to prohibition would eliminate the costs required to enforce it – an extra expenditure the government could not afford at this time.
The French-Indian War set Britain back a large amount in debt. Although the war was fought to protect the colonists and it is only just that Britain is reimbursed, their methods of regaining money were not. Up until the Stamp Act, taxes were only needed to regulate trade. The only reason for the imposed taxes were for raising money, an action which they did not have the authority to perform.(Document 2) Putting a tax on almost all daily purchases caused horrible living conditions. This unconstitutional act is justification enough to revolt. Britain and its Parliament has no rationalization in taxing and controlling all of the colonists’
The final reason America changed its mind about the Prohibition was because repealing the Amendment would create economic opportunities. If the liquor that was being sold by bootleggers was legally sold it could be taxed. The tax income could pay the interest on the entire local and national debt, and the US would be able to save the rest of the money (Doc E). Since at the time the US was in a depression, the money was in dire need. Repealing Prohibition seemed like the best solution to help the people and the
After the Revolutionary War the United States had a massive debt to deal with, but because of the Articles of Confederation the federal government could not raise taxes to pay off the debt (Blake). States were responsible for helping to pay off the federal government’s debt along with any of their own debt, so Massachusetts decided to institute heavy taxes that had to be paid in cash. According to historian Leonard Richards, “Taxes levied by the state [Massachusetts] were now much more oppressive—indeed many times more oppressive—than those that had been levied by the British on the eve of the American Revolution” (Richards 88).Ninety percent of all taxes collected were for property or poll taxes (Smith). Each family had to pay a tax for every male that was older than sixteen in the household under the poll tax, leaving the farmer who had grown sons very venerable. Many were unable to pay taxes and were thrown into prison. The farmers who could pay the taxes were left with very little cash to pay for necessities like food or clothing, to be able to acquire these items farmers had to trade their agricultural products. After British investors stopped giving credit to American merchants and demanded cash, the mer...
Prohibition was designed to rid the country of businesses that manufactured, sold, and or distributed alcoholic beverages. The eighteenth amendment made it a violation of the constitution to do and of the before mentioned. This was a crime punishable up to the Supreme Court. The original idea was that Americans as a whole were unhealthy, there was too much crime and corruption, and that people were being burdened by excess taxes that poorhouses and prisons were creating. What happened? The cheap alcohol being illegally produced killed more Americans, crime and corruption went up, taxes were raised to fund the law enforcement needed to enforce prohibition, and the prisons became overcrowded.
The Stamp Act was an act that was passed by the British Parliament that was to go into effect on November 1st, 1765. This act was created to help pay the costs to govern and protect the American colonies. The Stamp Act required stamps to be placed on all legal and commercial documents and various articles. Many colonists did not want the act to be implemented. For that reason, Samuel Adams put together the Sons of Liberty to help abolish this law. Then the Stamp Act Congress was composed to completely repeal the act. The Stamp Act was one of the many taxes that the British Parliament put on the colonies as a source of wealth. This act made it necessary for colonists to put stamps on almost all written documents and other various articles.
King George’s Taxes The most fundamental reason for the American Revolution was the colonist’s outrage over taxation which led to a tax revolt launched by people who were tired of the burden of paying unfair taxes. The king placed taxes known as Townsend Acts, on the colonist’s tea, paper, paint, lead, glass, and many other items that were used daily and the colonists were against this taxing. The purpose of the Townsend Acts was to help pay the cost of government in America.
The British citizens were being heavily taxed and the French and Indian War had taxed the British heavily. They thought that it was only right that the colonists whom they had spent so much money protecting, and who were taxed lightly in comparison with the other British citizens, to help pay. Note please that prior to this the British had allowed the colonists to tax themselves and did not impose revenue raising...
After the French and Indian War ended in 1763, Great Britain had nearly gone bankrupt paying for the war. The British thought it was only logical to start new taxes against the colonists. After all, to the British, they had fought the war in the name of the colonies and in what they believed was in their best interest. Many different types of taxes came and went to help pay for the debt. Over time, the
Prohibition made plethora of people furious at the government for passing the Eighteenth Amendment. Not only people were mad but also beer companies were mad. In this time of Prohibition citizens did not want to follow the governments laws. They wanted to drink alcohol. The citizens rebelled and they started buying it illegally. However, The Eighteenth Amendment did not directly state it was illegal to consume or have private possession Alcohol .