Background to McCulloch v. Maryland (1819)

First Bank of the United States (1791)

Chartered by Congress under Article I, Section 8 (Necessary and Proper Clause).

State Taxation Conflict

Maryland and other states taxed the Bank's operations, challenging federal authority.

Core Dispute

Could states tax a federally chartered institution? Did the Necessary and Proper Clause grant Congress implied powers beyond enumerated ones?

Maryland's Argument

Right to tax any entity within its borders; Bank not essential to federal powers.

Federal Position

Bank a valid exercise of implied powers; state taxation would undermine federal supremacy.

Significance

The Supreme Court's ruling established implied powers and federal supremacy.