McCulloch v. Maryland

McCulloch v. Maryland, 17 U.S. (4 Wheat.) 316 (1819), is a landmark decision of the United States Supreme Court.

After the Second Bank of the United States was chartered by Congress, Maryland imposed a tax on the Baltimore branch. James McCulloch, the bank’s cashier, refused to pay. The state sued and won in Maryland courts. McCulloch appealed to the Supreme Court, arguing that the bank was constitutional and that states could not tax federal instrumentalities.

Significance

Chief Justice Marshall’s opinion established two bedrock principles of constitutional law: (1) Congress possesses implied powers beyond those explicitly listed in Article I, Section 8 — the Necessary and Proper Clause allows Congress to choose any means not prohibited by the Constitution to carry out its enumerated powers; (2) states may not tax federal entities because ’the power to tax involves the power to destroy.’ The decision broadly expanded federal power and remains a key precedent for federal supremacy.

Category

US Federal Case Law