MCCULLOCH V. MARYLAND

CONTEXT

• Maryland taxed bank notes of Second Bank of US
• Bank's Baltimore branch (James McCulloch) refused to pay the tax
• In response, Maryland sued James McCulloch for collection of the debt
• McCulloch, arguing the tax unconstitutional, appealed to the Supreme Court

THE CASE

• Unanimous desision of the court- written by Chief Justice John Marshall
• Pointed to the Necessary and Proper Clause of Article I, Section 8
• Gives Congress the power to make all laws "necessary and proper" to execute its "enumerated powers"
• Bank of US is constitutional because it relates to Congress' responsibility to tax, borrow, and regulate commerce
• Maryland tax unconstitutional

THE CASE CONT.

• Maryland lacked the power to tax the bank because of Supremacy Clause (Article VI)
• Law of United States comes before conflicting state laws
• Lastly, court held that sovereignty lies with the people, not individual states

CONSTITUTIONAL JUSTIFICATION

• Necessary and Proper Clause of Article I Section 8
• Congress can make any law that helps them carry out their constitutional obligations
• Supremacy Clause of Article VI
• Federal Laws above state laws
• John Marshall demonstrates a loose interpretation of the Constitution

REFLECTION OF FEDERALISM

• Profoundly defined the supremacy of national power
• Establishes national law over state law
• First time Supreme Court fully exercises judicial review

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