Lecture Notes: McCulloch v. Maryland and Federalism

Key Concepts

• Federalism: Shared power between federal and state governments.
  • Disputes arise when powers are not clearly defined.

Background on National Bank

• Founding Debate: National Bank was a contentious issue.
  • Alexander Hamilton: Supported a National Bank for financial control.
  • Thomas Jefferson: Opposed it, citing lack of constitutional authority.

Timeline of Events

• 1791: Congress chartered the First National Bank in Philadelphia.
• 1811: Jefferson's influence led to the refusal to renew the bank's charter.
• 1816: Second National Bank established by President James Madison to address debts from the War of 1812.

The Case: McCulloch v. Maryland (1816)

• Context: Second National Bank established in Maryland.
  • Maryland aimed to exert control by taxing the National Bank.
  • Federal bank cashier James McCulloch refused to pay the tax.

Legal Questions Raised

• Does the federal government have the authority to create a National Bank?
• Can a state tax a federal institution?

Supreme Court Decision

• Outcome: Unanimous decision in favor of the National Bank.
  • Chief Justice John Marshall: Wrote the court's opinion.
  • Cited the Necessary and Proper Clause: Congress can make laws necessary for executing its powers.
• Supremacy Clause: Federal laws take precedence over state laws.
  • Marshall emphasized: "The power to tax involves the power to destroy."

Implications of the Ruling

• Defined the balance of power in federalism, favoring federal authority.
• Established that the federal government has constitutional backing for a National Bank.

Contemporary Relevance

• Ongoing issues related to federalism include:
  • Healthcare
  • Legalization of marijuana
  • Second Amendment rights
  • Immigration
  • LGBTQ issues

Additional Resources

• For further understanding of important court cases, refer to available educational videos.