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McCulloch vs. Maryland
America 1819 Maryland created an act that placed every bank under Maryland's taxation model.
Every bank that operated in the state of Maryland now had to pay Maryland a tax. James McCulloch, a cashier of the Baltimore branch, was the defendant, as he refused to pay the tax.
The case was brought to the Supreme Court. McCulloch refused to pay the tax, and believed "federal banks were not subject to state taxation." Maryland, the plaintiff, believed "the federal bank should pay state taxes because they were operating on their land and using their resources."
The court ruled in favor of McCulloch.
McCulloch vs. Maryland led to many future decision over taxation issues.
The Necessary and Proper Clause of the United States Constitution stated that "the Federal Government was permitted to operate banks within individual states without paying taxes.
Sources: -The American Pageant textbook -kids.laws.com/ mcculloch-v-maryland
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