How did Hamilton plan to generate the revenue necessary to pay interest on the national debt?
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Correct answer: Through excise taxes, such as the tax on whiskey, and customs duties
Hamilton relied on indirect taxes to fund the government and service the debt. The Whiskey Tax of 1791 was a key component of this strategy, though it eventually led to the Whiskey Rebellion in Western Pennsylvania.
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More Hamilton's Financial Plan questions
- Thomas Jefferson’s primary objection to the National Bank was based on the belief that:
- Which of the following was a primary function of the First Bank of the United States?
- What was Hamilton’s view on the 'public debt' of the United States?
- The Whiskey Rebellion of 1794 was significant because it demonstrated:
- What role did 'speculators' play in the controversy over Hamilton's funding plan?
- Which economic vision did Hamilton’s financial plan prioritize?