McCullough v. Maryland and Federalism

Background

• Federalism: Concept where federal and state governments share power. Can lead to disputes when powers aren't clearly defined.
• Early Dispute: Whether state governments could tax the federal government was a contentious issue.

Historical Context

• Bank of the United States:
  • Central debate at the nation's founding.
  • Alexander Hamilton: Supported a national bank to control finances.
  • Thomas Jefferson & James Madison: Opposed it, citing no constitutional authority.
  • 1791: First National Bank chartered in Philadelphia.
  • 1811: Bank's charter not renewed by Congress and President Madison.

McCullough v. Maryland Case

• 1816: Second National Bank created to manage War of 1812 debts.
• Bank located in Maryland.
• Democratic-Republican Party in Maryland attempted to tax the bank.
• James McCullough: Federal bank cashier refused to pay the tax.

Legal Questions

• Could states tax the federal government?
• Was the national bank's establishment constitutional?

Supreme Court Ruling

• Decision: Unanimous in favor of federal government.
• Chief Justice John Marshall:
  • Cited the Necessary and Proper Clause: Congress can make laws deemed necessary and proper.
  • Powers of the bank related to Article 1, Section 8 of the Constitution.
  • Supremacy Clause: Federal law is superior to state law.
  • "The power to tax involves the power to destroy."
• Outcome: Federal government had precedence, and Maryland could not tax the federal bank.

Impact and Significance

• Defined federalism in the U.S., enhancing federal power.
• Relevant for contemporary issues like healthcare, marijuana legalization, immigration, and others.

Additional Resources

• Homework Help series for more court case insights.