USA HISTORY

Detailed explanation-1: -In 1818, however, the Maryland legislature voted to impose a tax on all banks within the state that were not chartered by the legislature. The Second Bank of the United States refused to comply with the law, resulting in a lawsuit against its head, James William McCulloch.

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: -Several states, including Maryland and Ohio, implemented taxes on the Bank of the United States. These states hoped that, by taxing the banks, money would then enter the grasp of state governments. The state governments could then make loans to their citizens, thus relieving the money shortage.

Detailed explanation-4: -Which of the following is true about the case of McCulloch v. Maryland and the conflict between the state and federal government? The state sued the national government based on the claims that the national government had overstepped its bounds by creating the bank and the states could tax it.