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What was the significance of McCulloch v Maryland?

McCulloch v Maryland was an important court case. The question that needed to be decided was if a state could tax a federal institution such as the national bank. Maryland taxed the national bank. The bank’s cashier, James McCulloch, refused to pay the tax. Maryland then sued the national bank.


The Supreme Court ruled that a state couldn’t tax a federal institution. Therefore, the national bank didn’t have to pay the tax that Maryland imposed on it.


However, the ruling went much further. The Supreme Court ruled that a loose interpretation of the Constitution was legal. This would allow the federal government to do many things unless the Constitution specifically prevented the government from doing them. The ruling also reinforced the idea that federal laws take priority over state laws. This ruling significantly enhanced the power of the federal government.


McCulloch v Maryland was an important case that had far reaching consequences.

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