McCulloch v. Maryland · US History

Which statement best summarizes the holding of McCulloch v. Maryland?

  1. Congress could create the national bank, and Maryland could not tax it
  2. Congress lacked power to create banks, but Maryland could tax them
  3. States could nullify federal banking laws whenever they disagreed
  4. The Supreme Court refused to decide the case because it involved politics
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Correct answer: Congress could create the national bank, and Maryland could not tax it

The Court held that Congress had constitutional authority to establish the national bank under its implied powers. It also held that Maryland's tax on the bank was unconstitutional because it interfered with federal supremacy.

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