McCulloch V. Maryland
Date: 1819
Case Background:
Maryland imposed a tax on all banks within the state which had not been chartered by the state. Maryland declared that all banks were prohibited from issuing bank notes except those issued by the state. Fines and fees were set in place for the misuse of paper bank notes. Issue: The Second Bank of the United States was established after an act of Congress in 1816. McCulloch was a cashier at the Baltimore branch of the Bank of the United States. "He issued bank notes without complying with the Maryland law. Maryland then sued McCulloch for failing to pay the taxes due under the Maryland statute and McCulloch contested the constitutionality of that act. Decision: The Supreme Court decided that the chartering of the bank was an implied power of the Constitution under the elastic clause. The elastic clause granted Congress the authority to make laws necessary and properly to execute the work of the Federal Government. Impact: The decision challenged the Constitution and questioned whether or not the Federal Government had sovereign power over the states. Marshall stated "the power to tax involves the power to destroy'. |
Justice: John Marshall
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