McCulloch v. Maryland
FACTS:
In 1816, Congress chartered The Second Bank of the US. In 1818, Maryland passed legislation to impose taxes on the bank. James W. McCulloch, the cashier of the Baltimore branch, refused to pay the tax. The state appeals court held that the Second Bank was unconstitutional because the Constitution did not provide a textual commitment for the federal government to charter a bank.
Constitutional Question:
Does the federal gov’t have implied powers and supremacy under the “necessary and proper (elastic )clause “ and supremacy clause?
Decision:
Unanimous 6-0, YES
Reasoning:
The Constitution does not specifically give Congress the power to make banks. It does, in Article I Section 8 (enumerated powers) lists the powers to coin money, borrow money, levy taxes, make bankruptcy laws, and punish counterfeiters.
The court reasoned that banking was necessary for the federal government to perform those functions. Therefore it could stretch its powers to create banks (elastic) under the necessary and proper clause and use implied powers.
Legacy
◦The federal gov’t will use the necessary and proper clause in other areas This increased federal power.
◦In Gibbons v. Ogden the commerce clause was invoked over navigation rights.
◦In Loving v. Virginia, the commerce clause was again invoked about racial discrimination.
◦This contributes to the argument over federal vs. state powers.
FACTS:
In 1816, Congress chartered The Second Bank of the US. In 1818, Maryland passed legislation to impose taxes on the bank. James W. McCulloch, the cashier of the Baltimore branch, refused to pay the tax. The state appeals court held that the Second Bank was unconstitutional because the Constitution did not provide a textual commitment for the federal government to charter a bank.
Constitutional Question:
Does the federal gov’t have implied powers and supremacy under the “necessary and proper (elastic )clause “ and supremacy clause?
Decision:
Unanimous 6-0, YES
Reasoning:
The Constitution does not specifically give Congress the power to make banks. It does, in Article I Section 8 (enumerated powers) lists the powers to coin money, borrow money, levy taxes, make bankruptcy laws, and punish counterfeiters.
The court reasoned that banking was necessary for the federal government to perform those functions. Therefore it could stretch its powers to create banks (elastic) under the necessary and proper clause and use implied powers.
Legacy
◦The federal gov’t will use the necessary and proper clause in other areas This increased federal power.
◦In Gibbons v. Ogden the commerce clause was invoked over navigation rights.
◦In Loving v. Virginia, the commerce clause was again invoked about racial discrimination.
◦This contributes to the argument over federal vs. state powers.