McCullough

McCullough

McCulloch v. Maryland, 1818

Congress chartered a bank in Maryland. Maryland attempted to impose a tax on the national bank. A cashier (James W. McCulloch) at the Baltimore branch of the bank, refused to pay the tax.

Does the Constitution give congress the right to charter the bank? Is it unconstitutional for Maryland to tax this bank?

The Supreme Court ruled that Congress can charter the bank and Maryland cannot tax it. The court cited their unenumerated powers and claimed, "the constitution and the laws made in pursuance thereof are supreme. . .they control the constitution and laws of the respective states, and cannot be controlled by them." This case increased the power of the federal government over state governments.