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The US Supreme Court concluded that Congress had the right to charter a federal bank, as an implied power (also called unenumerated powers) of Article I, Section 8, because the bank was being used to further Congress' constitutional authority to tax and distribute funds.

The Court also held that the Supremacy Clause, which subordinates state laws to federal and US Constitutional law, prohibited the states from taxing any constitutional means the federal government uses to execute its powers.

Case Citation:

McCulloch v. Maryland, 17 US 316 (1819)

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12y ago
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13y ago

The Supreme Court's decision in McCulloch v. Maryland,(1819) held Congress had the constitutional authority to charter a federal bank (the Second Bank of the United States) under the Necessary and Proper Clause of Article I. The Court further held that the states (in this case, Maryland) could not impose taxes on the federal government.

Case Citation

McCulloch v. Maryland, 17 U.S. 316 (1819)

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13y ago

In McCulloch v. Maryland, (1819), the US Supreme Court concluded that Congress had the right to charter a national bank (the Second Bank of the United States) as a constitutional activity under the Taxing and Spending Clause. The Court held the Constitution's Necessary and Proper Clause (Article I, Section 8, Clause 18) conferred to Congress implied powers in addition to the listed enumerated powers in order to facilitate legitimate federal interests. Marshall explained Congress had the constitutional authority to charter a national bank in order to tax and distribute funds.

Article I, Section 8, Necessary & Proper Clause

[The Congress shall have the power] "To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof."

Case Citation:

McCulloch v. Maryland, 17 US 316 (1819)

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Q: What US Supreme Court case decided the federal government had the right to create a national bank?
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