McCulloch v. Maryland
United States Supreme Court
4 L. Ed. 579, 17 U.S. (4 Wheat.) 316 (1819)
- Written by Angela Patrick, JD
Facts
In 1790, Congress created the Bank of the United States (the bank), which existed until its charter expired in 1811. In 1816, Congress passed a new act reviving the bank’s existence, and the bank opened up a branch in the state of Maryland (plaintiff). The Maryland state legislature imposed a tax on all out-of-state banks operating in the state of Maryland. Although the tax was neutral on its surface, the bank was the only out-of-state bank in Maryland at the time, and it was the tax’s intended target. James McCulloch (defendant), the Maryland branch’s cashier, refused to pay the tax. Maryland sued McCulloch in state court, claiming that the Tenth Amendment and state sovereignty gave it an absolute right to tax anything within its borders. The trial court ruled for Maryland and ordered McCulloch to pay the tax. Maryland’s highest court affirmed. McCulloch petitioned for review in the United States Supreme Court.
Rule of Law
Issue
Holding and Reasoning (Marshall, C.J.)
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