Whiskey Rebellion Whiskey Rebellion The Whiskey Rebellion (also known as the Whiskey Insurrection) was a tax protest in the United States beginning in 1791 and ending in 1794 during the presidency of George Washington, ultimately under the command of American Revolutionary war veteran Major James McFarlane. The so-called "whiskey tax" was the first tax imposed on a domestic product by the newly formed federal government. It became law in 1791, and was intended to generate revenue for the war debt incurred during the Revolutionary War. The tax applied to all distilled spirits, but American whiskey was by far the country's most popular
Whiskey Rebellion Farmers living west of the Appalachian Mountains distilled their excess grain into whiskey, which was easier and more profitable to transport over the mountains than the more cumbersome grain. A whiskey tax would make western farmers less competitive with eastern grain producers. Additionally, cash was always in short supply on the frontier, so whiskey often served as a medium of exchange. For poorer people who were paid in whiskey, the excise was essentially an income tax that wealthier easterners did not pay. Small-scale farmers also protested that Hamilton's excise effectively gave unfair tax breaks to large distillers, most of whom