USA HISTORY

Detailed explanation-1: -Maryland, 17 U.S. 316 (1819) States cannot interfere with the federal government when it uses its implied powers under the Necessary and Proper Clause to further its express constitutional powers. The U.S. Congress created the Second Bank of the United States in 1816.

Detailed explanation-2: -The court decided that the Federal Government had the right and power to set up a Federal bank and that states did not have the power to tax the Federal Government. Marshall ruled in favor of the Federal Government and concluded, “the power to tax involves the power to destroy."

Detailed explanation-3: -Maryland argued that as a sovereign state, it had the power to tax any business within its borders. McCulloch’s attorneys argued that a national bank was “necessary and proper” for Congress to establish in order to carry out its enumerated powers.

Detailed explanation-4: -McCulloch, refused to pay the tax. The state then sued McCulloch for $110, the penalty in the law for circulating unstamped banknotes in Maryland. State officials won their case in the Maryland courts, which led the bank to appeal to the U.S. Supreme Court, which began to hear arguments in the case on Feb.

Detailed explanation-5: -In the 1819 case McCulloch v. Maryland, the Supreme Court ruled that Congress has the constitutional authority to charter a national bank.