The federal government's decision to pay off the states' Revolutionary War debts required a new tax, which sparked an armed rebellion. 

Hamilton's tax on whiskey sparked the first armed rebellion against US federal authority

As Treasury secretary, Alexander Hamilton designed an excise tax on whiskey that provoked violent resistance in western Pennsylvania. The Whiskey Rebellion ended when George Washington mobilized state militias under federal authority to enforce the law.

Shays' rebellion pitted rebel veterans against the Revolution's leaders

The Revolutionary War led to independence and significant debt for most states. In 1786, a group of veterans and farmers from western Massachusetts protested against the state government’s increased taxes. Led by Daniel Shays, the group attempted to capture an armory in Springfield but failed.

Alexander Hamilton consolidated states' debts, implemented a tax system, and established a national bank

While the US was only 12 years old when Alexander Hamilton was tapped as the first secretary of the Treasury, it already owed almost $80M. With the country bringing in just $4.4M in taxes, that was not nearly enough to cover government operations and pay debts.

Hamilton built the foundations of the US financial system as the nation's first Treasury secretary

Appointed the nation's first Treasury secretary in 1789 by George Washington, Alexander Hamilton designed a powerful federal finance system—repaying war debts, creating new taxes, founding a national bank, and promoting economic development.

Hamilton created the First Bank of the United States

As Treasury secretary, Alexander Hamilton proposed the First Bank of the United States to stabilize national finances—serving as the government's fiscal agent, managing debt, and expanding credit through a public-private banking model.

The Compromise of 1790 broke a deadlock over debt and the national capital

In 1790, Alexander Hamilton, James Madison, and Thomas Jefferson reached an agreement that allowed Congress to assume the states' war debts and to approve a permanent national capital on the Potomac River.

Opposition to British taxes, regulation of trade was key to American independence

The economic situation in the colonies formed the backbone of the central events of the Revolution. British war debts caused it to lay the first direct taxes on colonists, cease their westward expansion claims, and adhere to stringent trade regulations, leading to backlash and eventual separation.

Americans celebrated the end of the Revolutionary War with nationwide toasts

In 1783, citizens celebrated the signing of the Preliminary Articles of Peace with nationwide parties. Across the new country, many made 13 toasts to the 13 states. They also drank to George Washington. One poet in Boston wrote, “Health to his honor I’d freely drink, Had I a glass of wine; And whosoever with me shall think, May mix their toast with mine.”

On July 1, 1862, the agency now known as the Internal Revenue Service was established and named the Bureau of Internal Revenue

It was created to collect the first-ever US income tax, which was created to help pay for the Civil War. After gaining their independence from Britain, Americans were skeptical about giving the federal government absolute power to collect federal income taxes. As a result, early US tax laws dictated that direct taxes, like income taxes, had to be directly apportioned to a state's population. The nation went back and forth on its federal tax laws multiple times. For instance, in 1872, the income tax from the Civil War was repealed. But it was revived in 1894, and then repealed again in 1895. In 1913, Congress passed the 16th Amendment, giving Congress the power to levy income taxes on individuals and corporations without apportioning the burden among the states in line with population, once and for all.

The rivalry between Alexander Hamilton and Thomas Jefferson centered on federalism—the question of how much power the federal government should hold relative to the states.

Alexander Hamilton and Thomas Jefferson clashed over how power should be divided in the new republic—Hamilton favoring a strong national government with broad implied powers, and Jefferson warning that such authority would erode state power and threaten republican liberty.

The Stamp Act of 1765 was a key stepping stone toward the American Revolution, igniting colonial resistance to British taxation.

The reaction to the first direct tax on colonists prompted the second-ever colonial congress and a broad boycott of British goods. It also gave birth to the Declaration of Rights and Grievances, the congress's document articulating the "no taxation without representation" stance. The act's passage was a major stepping stone to revolution.

At age 22, Washington inadvertently started the French and Indian War.

The US has carried debt since 1791

After the Revolutionary War, the US owed $75M to nations like France. Debt builds when spending exceeds revenue, funding programs, wars, and economic recovery efforts. Most debt is domestic, like Social Security bonds, with foreign nations also holding a share.

The Tariff Act of 1789 was one of America's first acts

One of the first acts ever passed by the United States Congress instituted tariffs on foreign goods. The bill was sponsored by then-Congressman James Madison and signed into law by President George Washington. The goods the first Congress felt necessary to tax included Jamaican rum, playing cards, and—of course—British tea.

The causes of American rebellion were multifaceted

British taxes on colonists to pay for the French and Indian War were just one element. Thousands of miles of separation between London and the Colonies, expanding territories, a distinct Colonial identity, and political conflicts combined to prompt the Revolution.

Explore the life and presidency of George Washington, whose two terms in office were defined by precedent-setting, restraint, and institution-building.

As the first president, Washington established lasting norms: enforcing civilian control of the military rather than placing it in the hands of generals, forming a Cabinet, asserting federal authority during the Whiskey Rebellion, and voluntarily stepping down after two terms.

The Founding Fathers were divided in their reactions to the Boston Tea Party.

The 1783 peace treaty with Britain formally ended the Revolutionary War and nearly doubled the size of the United States.

Hamilton was one of Washington's aides during the Revolutionary War

During the Revolutionary War, Alexander Hamilton served as a key aide to George Washington, handling correspondence, strategy, and coordination, and serving as a trusted intermediary between Washington, Congress, and senior military leaders.

Madison was America's first president during a formally declared war

During James Madison's presidency, Congress formally declared war on Britain in 1812 over its practice of seizing American sailors, trade restrictions, and repeated violations of US sovereignty—marking the first time a sitting American president led the nation through a declared war.

Andrew Jackson was the first and only president to eliminate the national debt

After Jackson slashed spending and began selling federal land, the government was accumulating more money than it was spending. The situation was unprecedented, but it didn’t last. Too much money was being printed and land prices rose to unsustainable levels. Within a year, the economy tumbled into a depression.

New York was a hotbed of early revolutionary activity

In the decade before independence, New York City saw Stamp Act riots, liberty pole confrontations, the 1770 Battle of Golden Hill, and defiance of the Quartering Act, and organized efforts to block and destroy taxed British tea.

Over a century ago, fewer than 1% of Americans paid income taxes—but the cost of World War II prompted the federal government to greatly expand the number of people required to pay income taxes.

The Declaration of Independence was not only a statement of principles but also an appeal for military allies that the struggling colonists needed to survive.

Hamilton founded what many regard as the first commercial bank in the United States

In 1784, Alexander Hamilton helped found the Bank of New York, which initially operated without a charter, financed early federal operations, provided what is considered the US government's first loan, and became the first stock traded on the New York Stock Exchange.

The first test of America's war powers came just a decade after the Constitution was ratified

During the undeclared Quasi-War with France in 1800, the Supreme Court ruled in Bas v. Tingy that Congress had authorized a valid "imperfect war" through statutes alone, without a formal declaration, establishing that there is a legal spectrum between peace and declared war.

The First Continental Congress did not meet to discuss independence from Britain

Washington's whiskey distillery at Mount Vernon was one of the largest in the country

By 1799, Mount Vernon's distillery produced nearly 11,000 gallons of whiskey annually, making it one of the largest commercial distilleries in the United States during Washington's lifetime and a significant source of income for the estate.

Congress actually voted to approve independence on July 2, 1776, leading many Founders to believe that would be the date Americans would one day celebrate.

This video highlights lesser-known facts about the Declaration of Independence, including that Congress approved independence on July 2—leading many Founders to believe that would be the day Americans would celebrate their independence.

The White House was burned by British forces during the War of 1812

On August 24, 1814, British troops invaded Washington, DC, and set fire to the President's House, destroying its interior and roof. However, the exterior sandstone walls survived. After the war, reconstruction began under the original architect.

Emanuel Leutze's painting 'Washington Crossing the Delaware' is one of the defining images of the Revolutionary War.

The US officially adopted an income tax in 1913

The US first levied income taxes during the Civil War, but modern income taxes became an American fixture in 1913. Two years earlier, Congress passed the 16th Amendment to give the government the right to tax individuals' and businesses' income. The US still technically levies the same federal income tax now as it did then—though it's evolved.

After the Boston Tea Party, colonists switched to coffee, which became the main morning drink for revolutionaries.

After the Boston Tea Party (1773), colonists boycotted tea and turned to coffee, with coffeehouses becoming hubs for revolutionary discussions. The stimulating import from the Caribbean helped shape the nascent American taste.

Revolutionary War reenactments have taken place for centuries

The first known reenactment of the war occurred in 1778, while the war was still ongoing. A journal entry from a lieutenant colonel in the Continental Army remarked that soldiers had commemorated a “Glorious victory obtained over the British” at Saratoga with “a Grand sham fight.”

The Stamp Act's real purpose was protecting colonists from Native Americans

The troops the act funded weren't left in America to guard against France, but to manage the aftermath of Pontiac's Rebellion and keep the peace between colonists and Indigenous nations. Some historians argue this means Native American resistance to British expansion indirectly triggered the tax that sparked the Revolution.

Alexander Hamilton played a significant role in creating the American system of government

From 1787 to 1788, Hamilton, James Madison, and John Jay anonymously published a collection of essays known as the Federalist Papers to promote the new Constitution. Of the 85 essays that proved pivotal to the eventual ratification of the document, Hamilton wrote 51.

The Barbary Wars were an early test of whether a president could wage war without a formal declaration from Congress

Jefferson sent naval forces against North African pirates without a congressional declaration of war, acting under his own authority. Years later, Madison took the opposite approach and formally sought congressional authorization.