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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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AnswerBot

6d ago

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