HISET Social Studies Practice

What was the main focus of the case McCulloch v Maryland?

1. Taxation powers of state versus federal government

2. Rights of minority groups in financial institutions

3. Limitations on the power of Congress

4. Federal government's role in individual rights

The correct answer is: Taxation powers of state versus federal government

The main focus of the case McCulloch v. Maryland was the relationship between state and federal powers, particularly concerning taxation. The Supreme Court examined whether the state of Maryland had the authority to tax the Second Bank of the United States, which was a federal institution. The ruling determined that while states have the power to tax, they cannot tax federal entities in a way that would interfere with federal functions. This case established the principle of federal supremacy, meaning that federal laws and institutions take precedence over state laws and actions, especially concerning matters of taxation and regulation. The decision reinforced the notion that the federal government holds significant powers that states cannot undermine, illustrating the balance of power within the federal system.