Excise Tax
- Main articles: Excise tax in the United States, Whiskey Rebellion
Federal excise taxes are applied to specific items such as motor fuels, tires, telephone usage, tobacco products, and alcoholic beverages. Excise taxes are often, but not always, allocated to special funds related to the object or activity taxed.
During the presidency of George Washington, Alexander Hamilton proposed a tax on distilled spirits to fund his policy of assuming the war debt of the American Revolution for those states which had failed to pay. After a vigorous debate, the House decided by a vote of 35-21 to approve legislation imposing a seven cent per-gallon excise tax on whiskey. This marks the first time in American history that congress voted to tax an American product, which led to the Whiskey Rebellion.
Read more about this topic: Taxation History Of The United States
Famous quotes containing the word tax:
“I have no doubt that it was a principle they fought for, as much as our ancestors, and not to avoid a three-penny tax on their tea; and the results of this battle will be as important and memorable to those whom it concerns as those of the battle of Bunker Hill, at least.”
—Henry David Thoreau (1817–1862)