McCulloch v. Maryland

The Summary

The Summary

The summary of the McCulloch v. Maryland case started when Maryland imposed a $15,000/year tax on the banks. Cashier James McCulloch refused to pay the tax. Then, they went to court because McCulloch refused to pay the $15,000. The court then decided that the federal government had the right and powers to set up a federal bank. Also, that the states did not have the power to tax the federal government at any time.

What is the Controversy?

The Controversy

The controversy that started it all was when the state of Maryland imposed a $15,000/year tax on the banks. Which cashier James McCulloch refused to pay. They then went to court. Maryland argued that they had the power to tax any business within its borders.

Maryland's Side

Maryland's main argument was that since Maryland is its own state. It had the power to tax any business within its borders.

The Main Points

McCulloch's Side

McCulloch's main argument was when his attorney argued that the national bank was "necesary and proper" for congress. Congress could also establish the "necesary and proper" in order to carry out its enumerated powers.

The Courts Decision

The Courts Decision

The courts decided that since the bank is a federal bank Maryland could not tax the bank. The courts also said " The power to tax involves the power to destroy". Then the court decided that since the federal government had the right to power and set up a federal bank. And that the states did not have the power to tax the federal government. They thought they could set up a bank because the bank would be part of the federal government.

The Lasting Impact on American Law/People

The Lasting Impact for American Law/People

On of the main impacts of the McCulloch v. Maryland case is that when the state and federal laws are in conflict, the federal law always wins. So whenever something comes in between a state and federal law we now know which one will win. Another main conflict is that states cannot impose taxes on federal businesses. Congress has the power to incorporate the bank into things.

Important Facts

• It was one of the first and most important Supreme Court cases on federal power
• Maryland may not impose a tax on the bank
• The states did not have the power to tax the federal government
• This case established that congress had the power to establish a national bank
• The court also allowed congress to use the necesary and proper clause to heavily interpret its delegated powers.

Important Facts and Resources

Resources

• {{meta.pagetitle}}. {{meta.siteName}}. (n.d.). Retrieved January 17, 2023, from https://www.oyez.org/cases/1789-1850/17us316#:~:text=Maryland%20may%20not%20impose%20a%20tax%20on%20the%20bank.&text=In%20a%20unanimous%20decision%2C%20the,the%20execution%20of%20constitutional%20powers.
• McCulloch v. Maryland (1819). Bill of Rights Institute. (n.d.). Retrieved January 17, 2023, from https://billofrightsinstitute.org/e-lessons/mccullough-v-maryland-1819
• National Archives and Records Administration. (n.d.). McCulloch v. Maryland (1819). National Archives and Records Administration. Retrieved January 17, 2023, from https://www.archives.gov/milestone-documents/mcculloch-v-maryland#:~:text=The%20court%20decided%20that%20the,involves%20the%20power%20to%20destroy.%22

Interviews

Interview

Do you know who James McCulloch was and what he did?

Yes, he was a cashier in a Maryland bank and refused to pay the $15,000 tax.

In whose favor did the Supreme Court rule?

James McCulloch

Was it constitutional for Congress to create a national bank?

Yes

What year did McCulloch v. Maryland happen?

1819

How much money did Maryland tax on the bank?

$15,000