McCulloch v. Maryland
The decision strengthened national power and became a foundation for understanding implied powers and federal supremacy.
Did Congress have constitutional authority to create a national bank, and could a state tax it?
McCulloch v. Maryland turned a dispute over a state tax into one of the central rulings on federal power. Maryland tried to tax the federally chartered Bank of the United States, and James McCulloch, the Baltimore branch cashier, refused to pay.
Chief Justice John Marshall held that Congress could create the bank under the Necessary and Proper Clause because the Constitution gives Congress implied powers to carry out its enumerated powers. The Court also held that Maryland could not tax the federal institution because the states cannot use taxation to control or destroy lawful federal operations.
The decision still anchors debates over federalism. It explains why national power can be practical as well as explicit: Congress may choose reasonable means to carry out constitutional responsibilities, while states remain barred from interfering with valid federal law.
Facts
Maryland attempted to tax the federally chartered Bank of the United States.
Ruling
The Court upheld implied federal powers under the Necessary and Proper Clause and held that states could not tax valid federal instruments.
Why It Matters
The decision strengthened national power and became a foundation for understanding implied powers and federal supremacy.
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