TAXES:
The Whiskey Rebellion, or Whiskey Insurrection, was a tax protest in the United States beginning in 1791, during the presidency of George Washington. The rebellion was provoked by the imposition of an excise tax on distilled spirits. Although the tax applied to all distilled spirits, whiskey was by far the most popular distilled beverage in 18th-century America so the excise became widely known as a "whiskey tax." The new excise was a part of treasury secretary Alexander Hamilton's program to fund war debt incurred during the Revolutionary War.
The tax was resisted by farmers in the western frontier regions who were long accustomed to distilling their surplus grain and corn into whiskey. In these regions, whiskey was sufficiently popular that it often served as a medium of exchange. Many of the resisters were war veterans who believed that they were fighting for the principles of the American Revolution, in particular against taxation without local representation, while the Federal government maintained the taxes were the legal expression of the taxation powers of Congress.
Throughout counties in Western Pennsylvania, protesters used violence and intimidation to prevent federal officials from collecting the tax. Resistance came to a climax in July 1794, when a U.S. marshal arrived in western Pennsylvania to serve writs to distillers who had not paid the excise. The alarm was raised, and more than 500 armed men attacked the fortified home of tax inspector General John Neville. Washington responded by sending peace commissioners to western Pennsylvania to negotiate with the rebels, while at the same time calling on governors to send a militia force to enforce the tax. With 13,000 militia provided by the governors of Virginia, Maryland, New Jersey, and Pennsylvania, Washington rode at the head of an army to suppress the insurgency. The rebels all went home before the arrival of the army, and there was no confrontation. About 20 men were arrested, but all were later acquitted or pardoned.
The Whiskey Rebellion demonstrated that the new national government had the willingness and ability to suppress violent resistance to its laws. The whiskey excise remained difficult to collect, however. The events contributed to the formation of political parties in the United States, a process already underway. The whiskey tax was repealed after Thomas Jefferson's Republican Party, which opposed Hamilton's Federalist Party, came to power in 1801.
