Presentation on theme: "McCulloch V. Maryland 1819. Background Info/Facts - Second National Bank established in Maryland - Many people opposed the bank being established in the."— Presentation transcript:
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 - 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 in MD and went to Supreme Court
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??
Ruling 1. Congress HAS the power to establish a national bank in the state of Maryland! 2. Maryland DOES NOT have the power to tax the bank! * taxing a national institution is an indirect tax on citizens of other states UNCONSTITUTIONAL!
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!