 UNITARY  CONFEDERATE  FEDERAL

 Why Is Federalism So Important?  Decentralizes our politics  More opportunities to participate  Decentralizes our policies  Federal and state governments handle different problems.  States regulate drinking ages, marriage, and speed limits.  States can solve the same problem in different ways and tend to be policy innovators.

 EXPRESSED AKA ENUMERATED (A1S8)  IMPLIED (A1S8)  INHERENT (NATURAL RIGHT)  RESERVED (10 TH A)  CONCURRENT (STATE & NAT’L)  PROHIBITED (DENIED)

 SUPREMACY (A6)  NECESSARY AND PROPER (ELASTIC) (A1)  FULL FAITH AND CREDIT (A4)  PRIVILIGES AND IMMUNITIES (A4)  EXTRADITION  INTERSTATE COMPACTS

 Congress chartered the Second Nat’l Bank of the US in  In 1818, the Maryland legislature passed a law imposing a tax on the operation of the Baltimore branch of the bank.  James McCulloch, cashier of the Baltimore branch, refused to pay the tax.  When the Maryland state courts ruled against him, McCulloch appealed to the USSC.

 Does the Constitution permit Congress to charter a bank?  Does a state have a constitutional right to tax an agency of the United States government?

 Led by CJ Marshall, the Supreme Court ruled that creating a national bank was within the implied powers of Congress. Marshall acknowledged that the word “bank” is not in the Constitution. However, the Constitution does specifically grant Congress the power to impose taxes, issue a currency, and borrow money. Although the Constitution does not specifically enumerate (express) creating a bank, it does grant Congress the power to “make all laws necessary and proper for carrying into execution the foregoing powers.

 Congress may thus reasonably decide that chartering a national bank is a “necessary and proper” way to carry out its expressed powers.

 McCulloch v Maryland confirmed the right of Congress to utilize implied powers to carry out its expressed powers. Federal programs to build interstate highways, regulate labor-management relations, and inspect food and drugs are all justified as implied powers of Congress.  The decision validated the supremacy of the national government over the states by declaring that states cannot interfere with or tax the legitimate activities of the federal government.

 Did the USSC make to broad an interpretation of the implied powers of government in ruling in McCulloch v Maryland? Yes/No and Why/Why not.