Background
When the Quasi-War with France threatened to escalate in 1798, Congress raised a large army and enlarged the navy. To pay for it, Congress in July 1798 imposed $2 million in new taxes on real estate and slaves, apportioned among the states according to the requirements of the Constitution. It was the first (and only) such federal tax.
Congress had also recently passed the Alien and Sedition Acts, criminalizing dissent and increasing the power of the executive branch under John Adams.
Read more about this topic: Fries's Rebellion
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