USA HISTORY

Detailed explanation-1: -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-2: -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: -In McCulloch v. Maryland (1819) the Supreme Court ruled that Congress had implied powers under the Necessary and Proper Clause of Article I, Section 8 of the Constitution to create the Second Bank of the United States and that the state of Maryland lacked the power to tax the Bank.

Detailed explanation-4: -The state of Maryland imposed a tax on the bank of $15, 000/year, which cashier James McCulloch of the Baltimore branch refused to pay. The case went to the Supreme Court.

Detailed explanation-5: -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.