In 1791 Hamilton convinced Congress to approve taxes on distilled spirits and carriages. Hamilton 's principal reason for the tax was that he wanted to pay down the national debt, but he justified the tax "more as a measure of social discipline than as a source of revenue." But most importantly, Hamilton "wanted the tax imposed to advance and secure the power of the new federal government."
Congress designed the tax so smaller distillers would pay by the gallon, while larger distillers (who could produce in volume) could take advantage of a flat fee. The net result was to affect smaller producers more than larger ones. George Washington, the president at the time, was one such large producer of whiskey. Large producers were assessed a tax of