Question

Why did Maryland feel it had the right to tax the national bank in the first place?Because the bank was located within its state borders, thus giving it the right to tax.Because the bank was funded primarily by investors from Maryland.Because the state of Maryland was struggling financially and wanted to obtain significant tax revenue from the National Bank.

Answer 1

Maryland felt it had the right to tax the national bank primarily **because the bank was located within its state borders, thus giving it the right to tax.** This belief was rooted in the state's authority to levy taxes on businesses operating within its territory. The specific case in question, McCulloch v. Maryland (1819), revolved around the constitutionality of the national bank and the limits of state versus federal powers. The Supreme Court ultimately ruled that while states have the power to tax, they cannot tax federal institutions in a way that would interfere with their operations. This case reinforced the principle of federal supremacy over state laws regarding national institutions.