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Explanation:
The ruling in McCulloch v. Maryland, pronounced in 1819 by the Supreme Court, laid the definitive foundations of federalism as the form of organization of the nation.
The case began because the state of Maryland had tried to stop the operation of a branch of the Second Bank of the United States in its territory. Basically, the state tried to approve a higher tax burden on all bills that had not been issued by state banks, thus making this bank's operations more expensive and favoring Maryland banks. Its objective was to limit the power of the federal government to regulate monetary policy in its territory, making the rights of the state prevail over those of the federal government.
The Supreme Court, led by federalist John Marshall, ruled against said tax, arguing that it limited the implicit powers of Congress, based on the "necessary and proper" clause of Article I of the Constitution, which allows Congress to carry on certain necessary and proper functions. Therefore, it determined that said tax was unconstitutional and allowed the Second Bank of the United States to continue operating normally.
The Supreme Court's decision in McCulloch v. Maryland, issued in 1819, provided the groundwork for federalism as the nation's organizational framework.
The dispute started when the state of Maryland attempted to shut down a branch of the Second Bank of the U.S. on its soil.Essentially, the state attempted to authorize a larger tax load on all bills that were not issued by state banks, so increasing the cost of this band's operations and favoring Maryland banks.
The Supreme Court, led by federalist john Marshall, ruled against the tax, claiming that it curtailed congress' implicit powers under Article I of the Constitution's "necessary and proper" language. As a result, it found that the tax was illegal and enabled the Second Bank pf the U.S. to resume normal operations.
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