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Many Southerners opposed Alexander Hamilton's tax plans because they believed they disproportionately favored the industrialized North at the expense of agrarian Southern economies. Southern states had already paid off their war debts, while Hamilton's proposals included federal assumption of state debts, which they felt was unfair. Additionally, there was a widespread fear that such taxes would lead to greater federal control and diminish states' rights. This opposition contributed to the growing regional tensions that would later manifest in the divide over slavery and states' rights.

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