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The Supreme Court held that the Supremacy Clause (Article VI, Clause 2), which elevates federal law above state law when the two are in conflict (and do not involve a right explicitly reserved to the states) protected the bank from being taxed by the State(s). Chief Justice John Marshall declared the states couldn't tax the federal government.

Case Citation:

McCulloch v. Maryland, 17 US 316 (1819)

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13y ago
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11y ago

Because "the power to tax is the power to destroy".

Read the case and you'll found out why.

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Q: Why did the Supreme Court decide the Second Bank of the US was immune from taxation?
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