Seeking a Real Tax Revolt (May/June 1991 | Volume: 42, Issue: 3)

Seeking a Real Tax Revolt

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Authors: Bernard A. Weisberger

Historic Era: Era 3: Revolution and the New Nation (1754-1820s)

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May/June 1991 | Volume 42, Issue 3

Whenever I begin the research for one of these columns, I am gratefully surprised to find that what I recall as a simple story turns up new questions and insights, as if I were unfolding an unsuspectedly intricate and lovely paper cutout. My latest rediscovery began in a search for historical parallels to a currently rising “tax revolt.” Last fall, many state gubernatorial candidates played to the discontents of heavily taxed real property owners. Nationally, the first version of a deficit-reduction package of taxes was shot down by the House.

I decided to remind readers of what I thought was a real protest: armed resistance in western Pennsylvania to a 1794 federal tax on whiskey. It was so severe that it took a federal army to put down the “insurrection.” My theme was to be that the levy on whiskey was actually somewhat unfair because, like all consumption taxes, it was unprogressively the same for rich and poor. But, I intended to argue, the war in the Alleghenies was unavoidable if the new United States government was to have any credibility. Taxation, especially on optional activities like tippling, is an unfortunate price of union, nationhood, and, well, civilization.

But, on review, it turned out to be a bit more complex. The sending of an army had more politics and less necessity in it than the usual brief textbook accounts admit. The great “rebellion” had only one confirmed fatality. Moreover, it had ended in virtual surrender before the troops marched. Finally, some of the insurgents believed that they were fighting not about money but rather on behalf of the cause of 1776—local and democratic control of taxation and government in general.

A whiskey tax was nothing new, but this one had special drawbacks. Its first version was passed in 1791 as part of Alexander Hamilton’s plan for a national revenue to be used (in part) to pay off the war debt, much of which had settled in the hands of rich speculators. That made it instantly suspect among ordinary folk. Some of them had opposed the Constitution on the very grounds that members of the far-away Congress would “consist of the lordly and high-minded … who [would] have no congenial feeling with the people.”

 

The tax, at seven cents per gallon distilled, might not seem heavy, but it had to be paid in hard currency by frontiersmen in a barter economy. And the tax collectors, empowered to poke around cellars and barns for illicitly hidden whiskey, were to get a share of the take. It was this practice that had led Dr. Samuel Johnson, in his dictionary, to define an “excise” as a “hateful tax” collected by “wretches hired by those to whom excise is paid.”

In addition, whiskey was a particularly hard item to tax in undeveloped western Pennsylvania. It had a crucial economic role. Wagon roads were non-existent or miserable, so that grain could not profitably