USA HISTORY

Detailed explanation-1: -In the case McCulloch v. Maryland, the Supreme Court considered whether Congress had the power to create a national bank and whether the state of Maryland had interfered with congressional powers by taxing the national bank.

Detailed explanation-2: -majority opinion by John Marshall. Maryland may not impose a tax on the bank. In a unanimous decision, the Court held that Congress had the power to incorporate the bank and that Maryland could not tax instruments of the national government employed in the execution of constitutional powers.

Detailed explanation-3: -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.

Detailed explanation-4: -Maryland that Congress had the authority to establish a federal bank, and that the financial institution could not be taxed by the states. But the decision carried a much larger significance, because it helped establish that the Constitution gave Congress powers that weren’t explicitly spelled out in the document.

Detailed explanation-5: -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."