50 amazing facts about the economy

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Taxes and prohibition
One link that is not often made is that between the 16th amendment and prohibition.

Excise taxes on alcohol contributed a surprisingly large percentage of federal revenues in the decades prior to the 16th amendment. Prohibition would not have been possible without a source of revenue to replace taxes raised from alcohol.

It is also possible to argue that the passage of the 17th amendment gave lobbying groups like the ASL and the WCTU the ability to threaten, and thereby influence, incumbent senators in a way that had not been previously possible.

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