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Why didn’t the federal local governments collect an excise tax on alcohol during prohibition

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The correct answer to this open question is the following.

The federal-local governments did not collect an excise tax on alcohol during prohibition because what many people demanded was to completely end the consumption of alcohol in America because they thought it was causing so much damage to people and family. Religious groups exerted heavy pressure on the federal government to completely prohibit the import, production, and sale of alcohol. Those were the prohibition years (1919-1933), but what really happened was that criminal organizations controlled the sale of alcohol and became very rich and powerful in cities like Chicago.

The federal and local governments did not collect excise tax on alcohol during prohibition years to provide support to the religious beliefs of people in the society.

Why did the governments not collect taxes during prohibition years?

The citizens of the United States of America had demanded a ban on the sale of alcohol as its consumption was causing damages to the people and their families at large.

Religious organization had also expressed their resistance against the sale of alcohol during the years of prohibition, which ranged from the year 1919 to 1933.

To stop the criminal organizations from selling alcohol by hoarding alcohol is one of the main reasons why the governments at different levels did not collect excise and taxes on alcohol during the years of prohibition.

Hence, the local and federal governments did not collect taxes and excises on alcohol during the prohibition years owing to the aforementioned reasons.

Learn more about the prohibition years here:

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