The Supreme Court case of McCulloch v. Maryland (1819) involved a dispute over the Second Bank of the United States and the state of Maryland’s attempt to tax the bank’s operations within its borders. The state argued that the federal government lacked the explicit constitutional authority to charter a national bank, and therefore, Maryland had the right to tax it. In effect, the case questioned the scope of federal power versus state power.
The Supreme Court, under Chief Justice John Marshall, ruled in favor of the federal government, establishing two key principles. First, the Court affirmed the implied powers of Congress, derived from the Necessary and Proper Clause (Article I, Section 8, Clause 18 of the Constitution). This clause grants Congress the power to enact laws “necessary and proper” for carrying out its enumerated powers. Second, the ruling upheld the supremacy of federal law over state law, confirming that states cannot impede the legitimate actions of the federal government (“the power to tax involves the power to destroy”). This decision significantly strengthened the power of the federal government and helped to solidify the foundation for a national economy.
