Virginia opposed Hamilton's plan to have the national government assume state debts because it believed that such a policy would unfairly benefit states with larger debts, like Massachusetts, while penalizing states like Virginia that had already paid off much of their debt. Additionally, Virginia feared that federal assumption of debts would increase national power at the expense of state sovereignty. This opposition was rooted in concerns over equitable treatment and the potential for a stronger central government that could dominate the states.
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