1. McCulloch V. Maryland 1819

2. 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
James McCulloch (bank clerk) wasn’t obeying the tax
McCulloch taken to court and was ruled against for breaking state law of NOT imposing the tax
* Case appealed to the highest court level
in MD and went to Supreme Court

3. Amendment/Issue Challenged
National Law V. State Law
Does congress have the power to establish a bank in the state of Maryland??
- Does the state of MD have the power to tax the bank for being established??

4. Ruling
Congress HAS the power to establish a national bank in the state of Maryland!
Maryland DOES NOT have the power to tax the bank!
* taxing a national institution is an indirect tax on citizens of other states  UNCONSTITUTIONAL!

5. Significance
* States are bound to obey the Constitution under the Supremacy Clause (Supreme Law of Land)
* Necessary and Proper Clause – establishing banks is not listed in Const., but to do what is “necessary and proper” to carry out commerce and monetary issues is!