Why Is Mcculloch Vs Maryland Important
National supremacy McCulloch v. Maryland was a supreme court case held back in 1819 concerning the topic of national bank and taxation. This court was like many more that came before it and after it as it was the national government and states government arguing in front of the supreme court. The bank was a national bank created in Maryland being the second ever created national bank. The case all took course after Maryland the state questioned the power of Congress being able to create a national bank. Then the state of Maryland imposed a tax on all branches of bank not “chartered by the legislature.” This tax was aimed directly at the national bank as they were the only bank not charted the tax was a 15,000 dollar annual fee. The McCulloch …show more content…
This also imposed that all banks were prohibited from issuing bank notes except on stamped paper approved by the state. The reason for this was in 1818 the state banks started to fall during the depression and they blamed the fall on the national bank. Maryland then created a hefty tax on any bank not charted within the state the national bank was the only bank not charted within the state (McBride Alex). Then the second national bank opened and issued these bank notes without complying with the states law. Maryland then tried to sue the McCulloch a cashier at the national bank for not complying.The McCulloch v. Maryland all was a supreme court case originally questioned does Congress have the power under the constitution to incorporate a bank even though it isn't clearly said in constitution? The other argument was does the state of Maryland have the power to tax an institution created by congress? The reason for Maryland trying to sue McCulloch was because they wanted money and he wasn't following state law …show more content…
This supreme court decision expressed national power more than many. This decision showed how much more power the national government has then the states within the nation. It was in this ruling that they reminded the nation that the constitution is just meant to be a basic outline of general ideas that are easily understood by the public (Jones Martin). If I was the supreme court I feel that I would've made a very similar decision. Reason being is that the national government should have much more power of states controlling what is right and what isnt. Their act of taxation was a obviously a ploy for money and a way to get back at the national bank for slowing down the states banks business. I would have ruled that Congress has the power to open a national bank wherever they please and that they avoid all taxation as it is the nations bank (Pearson
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Why Is Muculloch Vs Maryland Important
1477 Words | 6 PagesState of Maryland decided to impose a tax to exempt every bank in Maryland expect the Bank of the US. James Muculloch was the cashier of the Baltimore branch. When the bank’s Baltimore branch refused to pay the tax,Maryland sued James Muculloch. The Bank’s Baltimore branch refused to pay the annual tax of $15,000 in top of this was a $500 penalty for any state that violated the statute. McCulloch was convicted by a Maryland court of violating the tax statute because he refused to pay and was fined $2,500.
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823 Words | 4 PagesThey argued that as a sovereign state they could tax and control business inside their borders. Also they claimed that taxing banks was necessary to control and prevent any possible financial abuses. Furthermore, they argued that if the federal government had regulations on state banks Maryland could have regulations on the federal banks. Lastly, they argued that there was no authority included in the Constitution to charter a national bank, causing the Bank of the United States to be unconstitutional. Maryland imposed a tax on all the banks not chartered by the state.
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