Presidential Decision Making: George Washington and the Whiskey Rebellion
The Whiskey Rebellion
Alexander Hamilton, the first secretary of the treasury, had a number of difficult problems to deal with as the new nation began taking shape. In the beginning, the United States had very little money and many debts to repay. Hamilton needed to raise money and a tax was the most efficient way to do that. In 1791, Congress passed a tax on whiskey: 25% of the net price for a gallon of whiskey. Hamilton expected that this tax would help fund the treasury.
Farmers in western Pennsylvania did not like the tax. They thought it was too heavy a burden and claimed that the government should tax imports instead. Hamilton did not want to do this because he did not want anything to interfere with trade with other countries. A tax on imports would hurt businessmen and manufacturers in the eastern states. The farmers accused Hamilton of “playing favorites”.
The backcountry farmers grew grain. It was very expensive to move the grain long distance. The farmers converted their grain into whiskey, “liquid corn”. This was much easier to move and gave them extra income. In addition, whiskey was used as money in their part of the country. The farmers refused to pay the tax.
In 1794, officials tried to collect the tax. Farmers beat up and tarred and feathered tax collectors. They forced a small number of U.S. soldiers in the area to surrender. President George Washington had to decide what to do.
Your decision: If you were Washington, what action would you take?
Choose one and defend your choice. Explain.
a. Ask Congress to repeal the whiskey tax.
b. Work out a compromise with the farmers, reducing the tax on whiskey and
increasing the tax on imported goods.
c. Send an army to the area and force farmers to pay the tax.
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What did Washington do? ______
How does his actions compare with yours? ______
Current issues: (answer the following questions)
1. Who should be taxed and how much?
2. Should the rich pay a higher percentage of their income in taxes?
3. Should the poor pay any taxes at all?
4. Should corporations (businesses) pay taxes on the money they make?
5. What do you think is a fair system of taxation?
6. If you think a tax is unfair, should you have to pay it?
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