Hamilton believes that the power to collect taxes deemed necessary is crucial for the government.

He argues that the federal government needs a power of taxation equal to its necessities, both present, and future.

External taxes alone cannot provide enough revenue for a government as extensive as the one proposed, especially in a time of war.

Since America had just won the American Revolution, the country needed to find a way to set up a system for the financial situation.

However, he believed that taxes were necessary in order to let the citizens live freely and without fear of their country going bankrupt.