Note that Madison, Jefferson's main ally, wrote many of the Federalist Papers. Jefferson himself was more wary of the Constitution, but Madison's participation in defending the Constitution via the Federalist Papers shows that early on there was a lot of common ground that Madison and his group could find with the arch-Federalist, Hamilton.

The American Revolution had been justified by the idea of 'no taxation without representation'. Although the establishment of Congress and the elected President in theory solved the 'no representation' problem, it was still anathema to suggest direct taxes on Americans. The famous Whiskey Rebellion was an armed insurrection against the idea of taxing the manufacture of Whiskey that occurred when Washington was President.

Rather than tax goods directly, the solution was to implement tariffs against manufactured imported goods as a way to raise revenue. At that time there was very little manufacturing industry in the US and the country was highly dependent upon imported goods. When, during the Napoleonic Wars, Thomas Jefferson imposed a trade embargo against both England and France and their allies (basically all of Europe), the US government nearly collapsed due to lack of revenues (which was part of Jefferson's goal - having a very small Federal government).

A generation later, in the 1830's, the tariff issue blew up into a sectional controversy, with the South (lead by South Carolina) claiming that the tariffs were unfair to the agrarian Southern (slave plantation) economy. Henry Clay was the champion of using tariffs to fund ventures by the Federal government to improve infrastructure - building canals, roads, etc. Andrew Jackson lead the party that wanted to starve the government of revenue in order to keep it small. John C. Calhoun (Vice President under Monroe and Jackson) lead the South Carolina anti-tariff movement. When South Carolina threatened to 'nullify' the Federal tariffs and not collect the taxes, President Jackson threatened to invade South Carolina himself and hang those who were committing 'treason'. Henry Clay authored a compromise that phased out the tariffs gradually.

The tariffs could be phased out because the Federal government was expanding westward rapidly, selling land to settlers very cheaply. Jackson (and his successor Van Buren) forcibly moved Native American tribes, like the Cherokee, westward in order to allow American settlers to claim the Indian lands. This lead to the concept of 'Manifest Destiny' - the right of the Americans to take all the land in North America all the way to the Pacific Ocean. As long as there was land available to settle (regardless of the Indians), then there was a revenue stream for the government in selling the lands to settlers and of course the land speculators.