Americans contribute to the income of state and federal government through taxes. Some taxes are sales taxes on everything from gasoline to CDs. Other taxes come out of people's paychecks. The very first tax the U.S. Congress required its citizens to pay was an excise tax on domestic whiskey. When that tax was increased from 9 to 25 cents per gallon, farmers of western Pennsylvania staged an armed revolt during the summer of 1794. This revolt is known as the Whiskey Rebellion. Taxing alcoholic beverages has remained a controversial issue to this day. Most policy makers agree that alcoholic beverages should be subject to higher taxes than other items. However, many disagree about the appropriate level for such taxes.

The main reason the government imposes taxes is to gain revenue, or income. Alcoholic beverage taxes have been a major source of funds for the...