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The tax was an ad valorem tax that added twenty five percent to the value of whiskey. Needless to say, this was not well accepted and the peoples' opposition to it would become one of the first tests of power the new government would have to face.
The thing about this tax is that the amount that had to be paid varied with how much was being produced...
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Large producers would only have to pay an annual tax of about six cents per gallon because they produced so much. This price could also be reduced if they created the whiskey in even larger quantities. On the other hand, there were also the small producers, that were mostly farmers, who made whiskey because grain was very hard to transport across the mountains, and making the grain into whiskey was much easier to carry across the mountains and much more profitable...
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