Which case addressed the relationship between the federal government and state taxation of the federal government?

Which case addressed the relationship between the federal government and state taxation of the federal government?

• A. Dred Scott v Sandford
• B. Plessy v Ferguson
• C. Marbury v Madison
• D. McCulloch v Maryland

Answer: (D)

Federal supremacy in taxation is being tested here: can a state tax the federal government? In McCulloch v. Maryland, the Supreme Court ruled that states cannot tax instruments of the national government, because doing so would allow states to interfere with federal operations. The decision affirmed that Congress has powers beyond those listed in the Constitution if they are necessary and proper to carry out its constitutional duties, and that federal law is supreme over state law through the Supremacy Clause. Maryland's attempt to tax the Bank of the United States would have the effect of destroying a federal institution, which the Constitution forbids. The court also clarified that states cannot use taxation to impede the federal government's constitutional actions. Other famous cases here address different issues: Dred Scott dealt with slavery and citizenship, Plessy with segregation, and Marbury with establishing judicial review. They don’t involve the relationship between state taxation and the federal government, which is why McCulloch v. Maryland is the best fit for this question.

Federal supremacy in taxation is being tested here: can a state tax the federal government? In McCulloch v. Maryland, the Supreme Court ruled that states cannot tax instruments of the national government, because doing so would allow states to interfere with federal operations. The decision affirmed that Congress has powers beyond those listed in the Constitution if they are necessary and proper to carry out its constitutional duties, and that federal law is supreme over state law through the Supremacy Clause. Maryland's attempt to tax the Bank of the United States would have the effect of destroying a federal institution, which the Constitution forbids. The court also clarified that states cannot use taxation to impede the federal government's constitutional actions.

Other famous cases here address different issues: Dred Scott dealt with slavery and citizenship, Plessy with segregation, and Marbury with establishing judicial review. They don’t involve the relationship between state taxation and the federal government, which is why McCulloch v. Maryland is the best fit for this question.