What clause was used to justify Maryland's inability to tax the Second Bank of the United States?
Asked by: Brannon Terry | Last update: February 14, 2026Score: 4.5/5 (29 votes)
Maryland's inability to tax the Second Bank of the United States was justified by the Supremacy Clause (Article VI) and the Necessary and Proper Clause (Article I, Section 8) of the U.S. Constitution, established in the landmark case McCulloch v. Maryland, which affirmed that federal laws and institutions are supreme to state laws, meaning states cannot tax the federal government's constitutional operations.
What clause prevented Maryland from taxing the National bank?
The Court interpreted the “necessary and proper” clause as allowing the federal government to execute the laws by means that are not specifically stated in the constitution. Second, because the national bank was constitutional, the state of Maryland was not allowed to tax its operation.
What clause was used to justify the Bank of the United States?
The Elastic Clause was used to justify the creation of a national bank, which would be challenged and then upheld in McCollough v. Maryland. The Elastic Clause appears in Article I, Section 8 of the United States Constitution, allowing Congress to make laws not specifically mentioned in the Constitution.
Why did the state of Maryland impose a tax on the Second Bank of the United States?
In 1816 Congress established the Second National Bank to help control the amount of unregulated currency issued by state banks. Many states questioned the constitutionality of the national bank, and Maryland set a precedent by requiring taxes on all banks not chartered by the state.
What is the Supremacy Clause in McCulloch v. Maryland?
Additionally, the Supremacy Clause in the Constitution makes federal laws supreme to state laws, and thus prohibits states from enacting laws contrary to federal laws. Consequently, Maryland's tax was unconstitutional.
McCulloch v. Maryland Summary | quimbee.com
What clauses were used in McCulloch v. Maryland?
Article I, Section 8, Clause 18: [The Congress shall have 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.
What is Article 1 Section 8 Clause 18 of the Constitution?
Article I, Section 8, Clause 18: [The Congress shall have 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.
Why didn't Maryland's state banks like the Bank of the United States?
Maryland's state banks weren't very happy about having a new competitor in town where people could do their banking. And they didn't like that the Bank of the U.S. had a privileged relationship with the U.S. government.
How did the Supreme Court justify its ruling in favor of the Second Bank of the United States?
The establishment of the Second Bank of the United States was thus ''necessary and proper'' for the federal government to fulfill its expressed duties in the Constitution. The Supreme Court also ruled that taxation by a state on a federal bank would diminish or destroy the effectiveness of the national bank.
What did the Supreme Court rule in the case of Maryland v. Wilson?
In Maryland v. Wilson,1 the United States Supreme Court held that a police officer may order a passenger of a lawfully stepped car to exit the vehicle. ' This "bright-line rule" allows these intrusions as a matter of course and does not require case-by-case determination.
Why is clause 18 called the elastic clause?
Significance: After an 1819 Supreme Court decision, the elastic clause provided the basis for the doctrine of implied powers, stretching the powers of the national government beyond those specifically granted by the Constitution.
What is the McCulloch case?
Facts of the case
James W. McCulloch, the cashier of the Baltimore branch of the bank, refused to pay the tax. The state appeals court held that the Second Bank was unconstitutional because the Constitution did not provide a textual commitment for the federal government to charter a bank.
What is Section 9 Clause 7?
Article I, Section 9, Clause 7: No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.
What is the elastic clause?
The Elastic Clause, found in Article I, Section 8 of the U.S. Constitution, empowers Congress to create laws deemed necessary and proper for executing its enumerated powers.
Was McCulloch v. Maryland unconstitutional?
McCulloch appealed to the U.S. Supreme Court, which reviewed the case in 1819. In a unanimous opinion written by Chief Justice Marshall, the Court ruled that the Bank of the United States was constitutional and that the Maryland tax was unconstitutional.
What was the legal argument in McCulloch v. Maryland against the federal government establishing a national bank Quizlet?
Correct - That was the main claim argued by Maryland. They argued that the power to charter a National bank was not found in the Constitution because it did not belong to the enumerated powers of the Congress as stated in Article One.
Why did the Supreme Court rule that Maryland could not tax the Second Bank of the United States?
Because a bank is a proper and suitable instrument to assist the operations of the government in the collection and disbursement of the revenue, and because federal laws are supreme over state laws, Maryland had no power to interfere with the bank's operation by taxing it.
Which president was opposed to the Second Bank of the United States in 1832?
President Andrew Jackson
Andrew Jackson called himself a Jeffersonian Democrat, while Thomas Jefferson called Jackson a dangerous man. Later that year, Jackson presented his case against the bank in a speech to Congress; to his chagrin, its members generally agreed that the bank was indeed constitutional.
Why was the Second Bank of the United States unconstitutional?
They pointed to the Bank's use of public funds for risky private ventures and its entanglement in political affairs as evidence of undue influence. For many, its blend of public authority and private profit was unconstitutional and eroded democratic ideals and state sovereignty.
Could the state of Maryland put a tax on the National bank or did that tax violate the Supremacy Clause of the Constitution?
Second, the Court ruled that Maryland lacked the power to tax the Bank because, pursuant to the Supremacy Clause of Article VI of the Constitution, the laws of the United States trump conflicting state laws.
Which president hated the National bank?
Jackson disliked the Bank for two main reasons: He believed it was too powerful and took authority away from the states. He thought it favored wealthy bankers instead of regular citizens.
What clause created the National bank?
Furthermore, Hamilton, unlike Jefferson, loosely interpreted the “necessary and proper” clause of Article 1, Section 8 of the Constitution to permit Congress to enact legislation for a national bank.
What is clause 18 known as?
Clause 18 Necessary and Proper Clause
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.
What is the Article 1 Clause 8?
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.
Why is the clause controversial?
The Supremacy Clause generated significant controversy during debates over the Constitution's ratification. Anti-Federalist opponents of the Constitution argued that the Clause would make the national government overly powerful and infringe on state sovereignty.