Mcculloch Vs Maryland Case Study
Most states did not accept the chartering of a National Bank. Therefore many states passed laws on either banning the bank completely or taxing it. Maryland passed a law requiring a stamp tax. The stamp tax was a tax on notes issued by an unchartered bank by the said state. Since the State of Maryland would not charter the Bank, a stamp tax was held to the notes given out. James W. McCulloch was an officer of the Second National Bank. McCulloch did not tax the notes withdrawal from the Bank. The State of Maryland sued McCulloch ($110) for being in violation of Maryland’s tax law. In the court system of Maryland, Maryland won the case of suing McCulloch. However the bank decided to appeal to the Supreme …show more content…
Luther also argued the Tenth Amendment….”powers not delegated by the United States nor prohibited to the states, are reserved to the states respectively, or to the people.” Therefore a bank can only be created by the states or the people they represent. So the question was were did Congress get the authority to set up the Bank? Maryland concluded that the Constitution had nowhere stated the limit states could tax. Thus stating that the states can tax any person or property in its borders.
Daniel Webster also argued the same Article and Section (Article 1, Section 8). Which states Congress has the power “to make Laws which shall be necessary and proper.” He added to his argument by saying the bank was a “proper and suitable” so could work efficiently. Webster 's defense for the taxing the bank was announcing that if the states can tax the bank, when will they start taxing the post and the services the government regulates. he expressed that “the power to tax, is the power to