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McCulloch V. Maryland 1819

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

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McCulloch V. Maryland 1819

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  1. McCulloch V. Maryland1819

  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!

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