The tax fell on a limited population (farmers living in the frontier) and was punitive in amount, and stifled commerce. It was met with what is now known as the Whiskey Tax Rebellion.
I also recall that the reason that whiskey was often made in those areas is that Corn and other cereals were very easily damaged and wasted by weather, poor storage conditions and rodent predation.
Turning your corn into whiskey insured a product that could travel long distances and would be well received and paid for. Thereby benefiting the farmers and the merchants who took the risk of transporting the whiskey from farm to markets on the east coast.
The Whiskey TAX was a not only an affront to the farmers but literally took the money needed by the farmer to continue to buy needed supplies to survive on the frontier. It’s no wonder they fought back. And in some ways the Whiskey Rebellion might have damaged beyond repair the fragile new nation of the United States of America.
Also Hamilton is also known as the Father of the Revenue Cutter Service that eventually became the Coast Guard we know today.
Hamilton was also the father of the Bank of the United States, which has died and been resurrected a couple of times to emerge in today's form now known as the Federal Reserve.
It is the Fed and its ability to print fiat currency on behalf of this country that has created the massive federal bureaucracy, crushing debt load, and financial crisis that is threatening our freedoms today.
Now they turn it into ethanol. It travels a long distance and we pay a lot for it.