Whiskey Rebellion were the government's primary source of revenue, had been raised as high as feasible. He therefore promoted passage of an excise tax on domestically produced distilled spirits. This was to be the first tax levied by the national government on a domestic product. Whiskey was by far the most popular distilled beverage in late 18th-century America, so the excise became known as the "whiskey tax." Taxes were politically unpopular, and Hamilton believed that the whiskey excise was a luxury tax and would be the least objectionable tax that the government could levy. In this, he had the support of some
American whiskey to by combining the term "straight" with the term for the type of whiskey. For example, a rye whiskey that meets this definition is called a "straight rye whiskey". Unqualified "whiskey" without a grain type identification such as "bourbon", "rye", or "corn" must be distilled at less than 95% alcohol by volume (190 proof) from a fermented mash of grain in such a manner that the distillate possesses the taste, aroma, and characteristics generally attributed to whiskey. It must be stored in oak containers – charred new oak is not required – and bottled at no less than 40% alcohol