Thursday, September 11, 2008

McCulloch v. Maryland

McCulloch v. Maryland
17 U.S. (4 Wheat.) 316 (1819)

Facts: Maryland tried to tax the federal bank; the bank refused to pay. (McCulloch worked for the bank).

Procedure: James v. McCulloch was the trial, which was decided for the plaintiff.

Issue: (a) Can the federal government/congress charter a bank? (b) Can the states tax it?

Holding: (a) Yes and (b) no.

Reasoning: (a) The fed gov't has the ability to use the means to pursue it's constitutional powers, unless those means have been specifically prohibited/restricted by the constitution. (b) The federal gov't is not a subject of the states, it is the government of the states; also the other states are indirectly taxed by Maryland's federal tax, which is taxation without representation or recourse.

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