Mcculloch v. maryland (1819)
Facts
The state of Maryland decided that it should be able to tax any business within its borders, including branches of the National Bank. A banker in one branch, James William McCulloch, refused to pay the tax, believing that a federal entity shouldn’t be subject to state taxation. The state of Maryland brought an action against him for not paying the tax.
What is the Constitutional Issue?
Whether the State of Maryland had the right to tax a federal agency (the National Bank), which was properly set up by the United States Congress through the necessary and proper clause. In other words, is the federal government superior to the states? (federal supremacy)
Supreme Court Opinion
The Supreme Court ruled that a federal agency, in this case, the National Bank, could not be taxed by a state government. This was an issue about federalism – states’ rights vs. federal supremacy.
The state of Maryland decided that it should be able to tax any business within its borders, including branches of the National Bank. A banker in one branch, James William McCulloch, refused to pay the tax, believing that a federal entity shouldn’t be subject to state taxation. The state of Maryland brought an action against him for not paying the tax.
What is the Constitutional Issue?
Whether the State of Maryland had the right to tax a federal agency (the National Bank), which was properly set up by the United States Congress through the necessary and proper clause. In other words, is the federal government superior to the states? (federal supremacy)
Supreme Court Opinion
The Supreme Court ruled that a federal agency, in this case, the National Bank, could not be taxed by a state government. This was an issue about federalism – states’ rights vs. federal supremacy.