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During Prohibition (1920-1933), the U.S. government could not collect excise taxes on alcohol because the sale, production, and transportation of Alcoholic Beverages were illegal. The 18th Amendment, which established Prohibition, aimed to eliminate alcohol consumption but inadvertently created a vast underground market. As a result, the government lost significant tax revenue that would have been generated from legal alcohol sales. Additionally, the enforcement of Prohibition led to widespread corruption and organized crime, further complicating any potential tax collection efforts.

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

During Prohibition, which lasted from 1920 to 1933, the production, sale, and transport of alcohol were illegal in the United States. As a result, federal and local governments could not legally collect an excise tax on alcohol because there were no legitimate sales transactions to tax. Additionally, the enforcement of Prohibition led to widespread illegal production and distribution of alcohol, making it challenging for authorities to regulate or tax the industry. The lack of legal sales effectively rendered the excise tax moot during this period.


During the Prohibition if you wanted to drink alcohol during Prohibition where would you go?

squeak easy


Bootlegger?

A smuggler of alcohol during prohibition


Women and efforts and sacrifices during World War 1 led to US government support for which reform?

alcohol prohibition


Women's efforts and sacrifices during World War 1 led US government support for which reform?

alcohol prohibition


What drug was substituted for alcohol during Prohibition?

Marijuana


Era during which alcohol was illegal?

The Prohibition era


How did the gangsters get the alcohol during the prohibition?

Through the smugglers


Where would you go to drink alcohol during Prohibition?

Speakeasies


During the prohibition era where did people purchase and consume alcohol?

in speakeasies


What does speakeasy mean 1920s?

A 'speakeasy' was American slang for an illegal premises selling alcohol during the Prohibition. Prohibition made the production, selling, drinking of alcohol a crime.


What was speakeasy mean 1920?

A 'speakeasy' was American slang for an illegal premises selling alcohol during the Prohibition. Prohibition made the production, selling, drinking of alcohol a crime.