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Why Is Muculloch Vs Maryland Important

1477 Words6 Pages

Muculloch V Maryland was a significant court decision because it established a new principle. The Landmark court decision had shown the importance of the Supreme court and how the Supreme court choose to interpret an existing law. The Bank during the time period is depository of federal funds. States saw the bank as having a privileged position in which they were having resentment. When State banks began to fall into the depression in 1818 they decided to blame the troubles they were having on the bank. State 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. Maryland wanted to collect the unpaid taxes. When brought to trial Maryland won. Mcculloch appealed to the US supreme court in 1819. “The United States attorney general,William Wirt,also argued on behalf …show more content…

“The power to tax involves the power to destroy.” (Gabers pg.131) . Despite that taxation can be destructive and be excess this would be considered an abuse in power. Our government has a balanced system and an abused power would not be part of government. Muculloch V Maryland made people question if they were able to trust their only nation and also to be able to give the nation more power than the state and to trust other states. In order for a proper government one state should have the trust in another. A functional society is one trust is

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