Mlinar Jacob Sec. 3 McCulloch v. Maryland (4) Wheat 316 (1819) FACTS: The federal government chartered the Bank or the United States under heavy criticism of it being unconstitutional. The state of Maryland passed a law that imposed taxes on all the banks not chartered by the state itself but located in the state territory, including that of a branch of the Bank of the United States. One of the cashiers of the bank, McCulloch, refused to pay the taxes claiming they were unconstitutional. ISSUE: Does the Congress have the power to incorporate a bank? Can the state of Maryland tax the branch of the Bank of United States without violating the Constitution? REASONING: Marshall, C.J: Although the term `bank' is not included in the constitution, Congress is given certain powers under the Taxing and Spending Clause to lay and collect taxes, borrow money, regulate commerce, etc. The 10th Amendment does not limit any given power given to Congress under the Taxing and Spending Clause therefore Congress must be given the means to accomplish those powers, even if that includes creating national bank. Under the Supremacy Clause of the Constitution, federal laws and courts, that of the Supreme Court, are given supremacy over any state laws or courts. The taxes imposed by Maryland cannot be levied against the federal because government under the Supremacy Clause states are not given enough power. If states were given power to override congress, they would be going against the primary principals of Democracy created and upheld by the Constitution. DECISION: Reversed RULE: Congress does have the power to incorporate a bank under the text of the Constitution. The state of Maryland does not have the power to tax the branch of the Bank of United States without violating the Constitution. CONCUR/DISSENT: No concurring/dissenting opinions. NOTES: Even though Congress is given power to accomplish needs stated in the constitution without unreasonable limits, is it legal for them to create a national bank. I don't exactly understand how this will help Congress accomplish goals set to them. Also if the bank was in fact located within the jurisdiction boundaries of the state of Maryland why, even being a government bank, would they be exempt from laws set my the state. States are given control over regulating commerce within their boundaries and if taxes are included and necessary then every bank should fall under the states jurisdiction. States are given the power to regulate commerce free of higher government
interpretation, how then can the government negate the powers given to the state in the constitution.