Supreme Court of the United States · 1819 · Constitutional Law
necessary and proper clauseimplied powersfederalismsupremacy clauseNecessary and Proper Clauseimplied powersenumerated powersfederal supremacy
Facts
Congress enacted a law incorporating the Bank of the United States, and the Bank established a branch in Maryland. Maryland passed a law imposing a tax on that branch. The defendant state denied the obligation of the federal law, while McCulloch contested the validity of the Maryland tax. The dispute required the Court to determine whether Congress had power to incorporate the Bank and whether Maryland could tax its operations.
Issue
Did Congress have constitutional power to incorporate the Bank of the United States, even though the Constitution does not expressly grant a power to create a bank or corporation? If so, could Maryland, consistent with the Constitution, impose a tax on the Bank's branch operating within the state?
Rule
The federal government is one of enumerated powers, but it may choose implied and incidental means to execute those powers. Let the end be legitimate, let it be within the scope of the Constitution, and all means which are appropriate, plainly adapted to that end, not prohibited, and consistent with the letter and spirit of the Constitution, are constitutional. Because the Constitution and laws made in pursuance thereof are supreme, states have no power, by taxation or otherwise, to retard, impede, burden, or in any manner control the operations of constitutional laws enacted by Congress to carry into execution the powers vested in the general government.
🔒
See the holding & full analysis
Create a free KwikCourt account to unlock the rest of this brief — and practice the case.
The court's holding and reasoning
Doctrine tests, pitfalls & exam hypotheticals
10 practice questions + 4 AI-graded essays on this case
One of 10 multiple-choice questions for this case. Pick an answer to see why.
Congress creates the National Revenue Transfer Authority, a federally chartered corporation headquartered in St. Louis, to receive federal tax payments, hold Treasury funds, and transfer money among regional offices. A taxpayer in Missouri challenges the statute, arguing that because the Constitution does not expressly mention corporations, Congress lacked power to create the Authority.
Is the taxpayer's challenge likely to succeed?
Explanation. The challenge should fail. The governing rule is that the federal government is one of enumerated powers, but Congress may select implied means to carry those powers into execution. The question is whether the end is legitimate and within the Constitution's scope, and whether the chosen means are appropriate, plainly adapted, not prohibited, and consistent with the Constitution's letter and spirit. Marshall rejected the argument that every means must be expressly named, and also rejected the view that incorporation can never be incidental. A federally chartered corporation used to collect, hold, and transfer federal revenue is an appropriate means of executing enumerated fiscal powers.