Holding: A. Congress has the authority to incorporate a bank. Why:
(1) not an expressly enumerated power but it is implied through the “necessary and proper” clause. (Art I, §8)
(2) Fed govt. although subject to constitutional limitations, reigns supreme over those areas where it enjoys constitutional authority. (Art VI)
(3) To read the word “necessary” as “indispensable” would render the use of word “proper” superfluous and without any meaning in that context.
(4) Refers to a rationally-related approach to congressional acts:
a. legitimate ends
b. within the scope of Constitution
c. by appropriate means
d. clearly adapted to that end
e. not expressly prohibited
f. in the spirit of the Constitution
As long as these criteria are present, the court will defer to the legislative judgment.
B. Maryland cannot tax the Fed and constitutionally created branch. Why:
(1) States cannot implement policies that would completely undermine constitutional intent.
(2) The tax undermines federalism—subverts the power relationship btw. Fed govt. and the States—States could use the ability to tax as leverage over the Fed govt.