In McCulloch v. Maryland, the Court held that Maryland could not tax the Bank of the United States because Congress has implied powers to create a national bank under which clause?

In McCulloch v. Maryland, the Court held that Maryland could not tax the Bank of the United States because Congress has implied powers to create a national bank under which clause?

• A. Elastic Clause
• B. Supremacy Clause
• C. Tenth Amendment
• D. Commerce Clause

Answer: (A)

The concept being tested is Congress’s use of implied powers through the Necessary and Proper (Elastic) Clause to create a national bank, and why that federal power limits state taxation of federal instruments. In McCulloch v. Maryland, the Court held that a national bank is constitutional because Congress can enact laws that are appropriate and convenient for carrying out its enumerated powers, such as borrowing money, paying debts, and regulating currency. This authority stems from the Elastic (Necessary and Proper) Clause, which allows implied powers needed to execute those clearly listed powers. Maryland’s tax would interfere with federal functions, and that conflict is resolved by recognizing that federal law, backed by the federal government's constitutional authority, supersedes state action to the extent of those powers. The Supremacy Clause underpins that federal law prevails, but the bank’s justification rests on the Necessary and Proper Clause. The Tenth Amendment and the Commerce Clause aren’t the bases for creating the bank in this case; the former emphasizes states’ reserved powers, which the decision says do not bar implied federal powers, and the latter governs trade, not the justification for the bank’s creation.

The concept being tested is Congress’s use of implied powers through the Necessary and Proper (Elastic) Clause to create a national bank, and why that federal power limits state taxation of federal instruments. In McCulloch v. Maryland, the Court held that a national bank is constitutional because Congress can enact laws that are appropriate and convenient for carrying out its enumerated powers, such as borrowing money, paying debts, and regulating currency. This authority stems from the Elastic (Necessary and Proper) Clause, which allows implied powers needed to execute those clearly listed powers. Maryland’s tax would interfere with federal functions, and that conflict is resolved by recognizing that federal law, backed by the federal government's constitutional authority, supersedes state action to the extent of those powers. The Supremacy Clause underpins that federal law prevails, but the bank’s justification rests on the Necessary and Proper Clause. The Tenth Amendment and the Commerce Clause aren’t the bases for creating the bank in this case; the former emphasizes states’ reserved powers, which the decision says do not bar implied federal powers, and the latter governs trade, not the justification for the bank’s creation.