McCulloch v. Maryland

The Court held that Congress has implied powers to establish a national bank and that states cannot tax federal instrumentalities.

Overview

Maryland taxed the Baltimore branch of the Second Bank of the United States, and bank cashier James McCulloch refused to pay. Chief Justice Marshall, for a unanimous Court, reasoned that the Necessary and Proper Clause granted Congress discretion to choose means for executing enumerated powers, and that the bank was a constitutional instrument. He further declared that the power to tax involves the power to destroy, so states may not burden federal institutions. McCulloch established the doctrine of implied congressional powers and federal immunity from state taxation, becoming perhaps the most cited case in federalism jurisprudence.