The state of Maryland imposed taxes on the Baltimore branch of the Second Bank of the United States in 1818, which the cashier James W. McCulloch refused to pay. McCulloch took the case to the Supreme Court, arguing that the Maryland tax was unconstitutional because Congress had established the national bank. The Supreme Court ruled 7-0 in favor of McCulloch, finding that Congress had the power to incorporate the bank and that Maryland could not interfere with the national government's powers through taxation. The decision established Congress's supremacy over the states.

2. The Case
In 1816 Congress
chartered The Second
Bank of the United States.
In 1818, the state of
Maryland passed
legislation to impose
taxes on the bank.
James W. McCulloch, the
cashier of the Baltimore
branch of the Second
Bank, refused to pay the
The Second Bank of the U.S.
tax.

3. How was the Constitution
violated?
 In this case the constitutional right of the
government to establish a bank was brought to
question. With this also came the problem of
whether or not it was unconstitutional for Maryland
to interfere with this congressional power.

4. The “Original Question” of the case.
 The original question this case needed
to decide was whether or not McCulloch
had to pay Maryland this tax, charged to
the bank.

5. Supreme Court
 Argued February 22, 1819
 Decided March 6, 1819

6. Final Decision
 McCulloch won unanimously, 7-0
 The Court decided Congress had the
power to incorporate the bank
 Maryland could not tax instruments of
the national government employed in
the execution of constitutional powers

7. Impact
 People knew Congress was more powerful
than the states
 State laws can interfere with congressional
powers
 “Laws made in pursuance [of the
Constitution] thereof are supreme…they
control the constitution and laws of the
respective states, and cannot be controlled
by them” –Chief Justice John Marshall