Most people, however, were happy. They liked what Jefferson said. They especially liked his plan to cut taxes.

Jefferson's biggest critic was his long-time political opponent, Alexander Hamilton. Hamilton had served as the nation's first treasury secretary. Now, he was a private lawyer in New York City. He published his criticism of Jefferson in a newspaper he started, the New York Evening Post.

In Congress, elected officials also debated the president's proposal to cut taxes. Federalists said it was dangerous for the government to depend mainly on import taxes. They said such a policy would lead to smuggling. People would try to bring goods into the United States secretly, without paying customs fees on them.

Federalists also said that if the United States cut taxes, it would not have enough money to pay its debts. Then no one would want to invest in the United States again.

Republicans said they were not afraid of smugglers. The danger, they said, would come from taxing the American people. There was no need for production and sales taxes. And, they said, the American people knew it. The Republicans also said they were sure the government would have enough money to pay its debts.

The Republicans won this legislative fight. Both the Senate and the House of Representatives voted to approve the president's plan to cut taxes.

Congress also had another of Jefferson’s proposals to debate. Jefferson wanted to reduce the number of federal courts. The issue had roots in the political divisions between the Federalist and Republican parties. And it started in the closing days of the previous president’s term.