In McCulloch v. Maryland, (1819), the Supreme Court established the principle of implied powers (also called unenumerated powers) by applying the Necessary and Proper Clause (Article I, Section 8, Clause 18), which allows Congress to take make appropriate laws to support legitimate federal interests:
"To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof."
In the opinion of the Court, Marshall concluded that Congress had the right to establish a national bank as an implied power under the Necessary and Proper Clause because the bank was being used to further Congress' constitutional authority to tax and distribute funds. Unlike the Articles of Confederation, which preceded the US Constitution, the Constitution does not prohibit the exercise of implied powers necessary to assist in carrying out constitutional mandates.
Case Citation:
McCulloch v. Maryland, 17 US 316 (1819)
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Article VI (Supremacy Clause)
This Constitution, and the laws of the United States which shall be made in pursuance thereof; and all treaties made, or which shall be made, under the authority of the United States, shall be the supreme law of the land; and the judges in every state shall be bound thereby, anything in the Constitution or laws of any State to the contrary notwithstanding.
For more information, see Related Questions and Related Links, below.
McCulloch v. Maryland prevented states from taxing the federal government. The state of Maryland was trying to impose a tax on all bank notes of banks not chartered in Maryland. At the time, the only bank of this sort in Maryland was the Second Bank of the United States.
The decision centered on Maryland's claim that because the Constitution was ratified by State conventions, the States were sovereign
What Constitutional power did McCulloch v. Maryland in 1819 test?
James McCulloch was cashier and head of the Baltimore, Maryland, branch of The Second Bank of the United States who refused to pay a new tax the State of Maryland attempted to impose on the bank. McCulloch was the nominal defendant in Maryland's case against the federal government in the state courts, and the petitioner in the US Supreme Court case McCulloch v. Maryland, (1819).Case Citation:McCulloch v. Maryland, 17 US 316 (1819)For more information about McCulloch v. Maryland, see Related Links, below.
McCulloch v. Maryland settled that the National Bank was constitutional. Also it settled that Maryland does not have the power to tax a institution created by congress.