mcculloch v. maryland 1819
DESCRIPTION
McCulloch V. Maryland 1819. Background Info/Facts. Second National Bank established in Maryland Many people opposed the bank being established in the state of Maryland so… Maryland placed a tax on the bank since it was residing in the state of MD - PowerPoint PPT PresentationTRANSCRIPT
McCulloch V. MarylandMcCulloch V. Maryland18191819
Background Info/FactsBackground Info/Facts- Second Second National Bank established in Maryland National Bank established in Maryland - Many people opposed the bank being established in the Many people opposed the bank being established in the
state of Maryland so…state of Maryland so…- Maryland placed a tax on the bank Maryland placed a tax on the bank since it was residing since it was residing
in the state of MDin the state of MD- James McCulloch (bank clerk) wasn’t obeying the taxJames McCulloch (bank clerk) wasn’t obeying the tax- McCulloch taken to court and was ruled against for McCulloch taken to court and was ruled against for
breaking state law of NOT imposing the taxbreaking state law of NOT imposing the tax* Case appealed to the highest court level* Case appealed to the highest court level in MD and went to Supreme Courtin MD and went to Supreme Court
Amendment/Issue ChallengedAmendment/Issue Challenged- National Law V. State LawNational Law V. State Law
- Does congress have the power to Does congress have the power to establish a bank in the state of establish a bank in the state of Maryland??Maryland??
- Does the state of MD have the power to - Does the state of MD have the power to tax the bank for being established??tax the bank for being established??
RulingRuling1.1. Congress HAS the power to establish a Congress HAS the power to establish a
national bank in the state of Maryland!national bank in the state of Maryland!
2.2. Maryland DOES NOT have the power to tax Maryland DOES NOT have the power to tax the bank!the bank!
* taxing a national institution is an indirect tax on * taxing a national institution is an indirect tax on citizens of other states citizens of other states UNCONSTITUTIONAL!UNCONSTITUTIONAL!
SignificanceSignificance* States are bound to obey the Constitution * States are bound to obey the Constitution
under the under the Supremacy Clause Supremacy Clause (Supreme Law (Supreme Law of Land)of Land)
* * Necessary and Proper Clause – Necessary and Proper Clause – establishing establishing banks is not listed in Const., but to do what banks is not listed in Const., but to do what is “necessary and proper” to carry out is “necessary and proper” to carry out commerce and monetary issues is!commerce and monetary issues is!