Does Congress Have Implied Powers? | McCulloch v. Maryland

In 1816, the US Congress established the Second Bank of the United States to stabilize the economy. Maryland imposed a tax on the bank, leading to a legal battle when James McCulloch refused to pay. The case reached the Supreme Court, which ruled in 1819 that the federal government had the authority to create the bank under the Necessary and Proper Clause. The ruling also reinforced the Supremacy Clause, preventing states from taxing federal entities. This landmark decision strengthened federal power and established the concept of implied powers.

What was the primary purpose of the Second Bank of the United States?

• To issue currency for the United States

• To regulate international trade

• To provide loans to state governments

• To manage all monetary transactions for the federal government

Why did Maryland impose a tax on the Baltimore branch of the Second Bank?

• To comply with federal regulations

• To target the Bank of the United States and hinder its operations

• To generate revenue for the state

• To encourage local banks to expand

What was Maryland's main argument against the constitutionality of the federal bank?

• The Constitution did not explicitly allow the creation of a central bank

• The bank was causing economic instability

• The bank was not providing loans to state governments

• The federal government had no right to regulate state banks

Which clause did Chief Justice John Marshall cite to justify the creation of the federal bank?

• Equal Protection Clause

• Necessary and Proper Clause

• Supremacy Clause

• Commerce Clause

What was the significance of the Supreme Court's decision in McCulloch v. Maryland?

• It allowed states to tax federal institutions

• It reinforced the idea of implied powers and federal supremacy over states

• It declared the Second Bank unconstitutional

• It limited the powers of the federal government