The US had acquired a lot of debt during the Revolutionary War. The government wanted to pay back this debt, so Alexander Hamilton (Secretary of the Treasury) suggested taxing the buying and selling of alcoholic beverages. This was the first time the government had tried to put a tax on an American made product. Thomas Jefferson and the Anti-Federalists (Democratic Republicans) were against the tax.
When farmers living in western Pennsylvania found out about the tax on alcohol, they felt like wealthy easterners were taking advantage of farmers in the west. The farmers felt like they were being taxed twice, once when the alcohol was sold, and again when it was purchased. The farmers thought only one tax should be paid, when it was purchased.
When tax collectors tried to collect the taxes from the farmers, the farmers refuse to pay, and threatened the tax collectors. When threats did not work, the farmers resorted to violence. The rebels burned the home of at least one tax collector and attacked, tarred, and feathered others.
The protests continued for three years, but by 1794, George Washington had enough. After protesters burned a tax collectors home to the ground near Pittsburgh, Washington lead federal troops into western Pennsylvania to put down the rebellion. Before Washington arrived, the rebels disbanded and gave up.
The government rounded up 150 rebels and tried them for treason. However, only two were found guilty, and they were later pardon by Washington. The Whiskey Rebellion ended. Washington had set another important precedent by showing that the federal government could enforce its laws.