What was Hamilton's rationale for placing a tax on whiskey?
(1 point)
• 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 halt the export of whiskey.
© He wanted to distribute the taxes to state governments
(1 point)
• He planned to use the tax to reduce the national debt.
Hamilton's rationale for placing a tax on whiskey was to distribute the taxes to state governments. (© He wanted to distribute the taxes to state governments)
To determine Alexander Hamilton's rationale for placing a tax on whiskey, we can look at historical context and Hamilton's economic and political objectives during his tenure as the United States Secretary of the Treasury. Hamilton's main goal was to strengthen the national economy and consolidate the federal government's power.
1. Hamilton planned to use the tax to reduce the national debt: This answer is correct. Hamilton believed that placing a tax on whiskey would generate revenue for the federal government, which could then be used to pay off the significant national debt left over from the Revolutionary War. The tax on whiskey was part of Hamilton's broader plan to stabilize the national economy and establish the creditworthiness of the United States.
2. He wanted to impose a penalty on farmers for producing too much whiskey: This answer is incorrect. Hamilton did not aim to penalize farmers for producing too much whiskey with this tax. Rather, he saw this tax as a means to raise revenue and address the country's economic challenges.
3. He wanted to halt the export of whiskey: This answer is incorrect. Hamilton's intention was not to halt the export of whiskey. While the tax did increase the cost of whiskey and, consequently, reduced export demand, Hamilton's primary focus was on domestic revenue generation.
4. He wanted to distribute the taxes to state governments: This answer is incorrect. Hamilton did not intend to distribute the taxes collected from the whiskey tax to state governments. Instead, the revenue generated from the tax was intended to support the federal government in paying off the national debt and funding important public projects.
Overall, the correct answer is: Hamilton planned to use the tax to reduce the national debt.