Making wine or beer at home is legal FOR YOUR OWN CONSUMPTION. It's illegal to sell your homebrew, and you're limited to 100 gallons of wine or 200 gallons of beer. The law apparently assumes that if making whiskey you intend to sell it.
Whiskey has always been heavily taxed, going back to the earliest days of the country. One of the first tests of the federal government was the Whiskey Rebellion of 1791.
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