SCOTUS: McCulloch v. Maryland

Facts

• 1816 the second National Bank was opened and branches were opened, in maryland included
• Maryland did not want it there and therefore passed legislation saying banks not chartered by Maryland would be taxed, therefore taxing national bank
• Cashier McCulloch refused to pay the tax and therefore brought the case to SCOTUS

Constitutional Principle

• Maryland said establishment of national bank was unconstitutional because it was not explicitly stated in Article I, Sec. 8 of Congress’ powers

• McCulloch said it was a Congressional power under elastic clause

• Implied powers

Decision

• Unanimous in favor of McCulloch
• Bank was constitutional because of elastic clause
• Established supremacy of national laws over state laws
• Matters because it demonstrated federalism and the power balance
    * Balance is tipped in federal government’s favor