FEDERALISM Powers of Government

Federalism  Definition- Divided authority/power between the state and federal/national government.

National Powers  Delegated Powers- powers the constitution grants or delegates to the national government Expressed- Powers directly expressed or stated in the Constitution by the Founders (First three Articles: levy/collect taxes, coin money, make war, raise army/navy) Implied- powers the national government requires to carry out its expressed powers (military draft, necessary and proper) Elastic Clause- allows the national government to “stretch” its powers “all laws necessary and proper” to carry out duties/obligations of government Inherent- powers the national government may exercise simply because it is the government (immigration laws, establish diplomatic relations with other countries)

State Powers  Reserved- powers in the constitution strictly reserved or given to the states Examples: regulate interstate commerce, administer elections, protect public welfare, health, morality. Supremacy Clause- Article VI Section 2 makes acts of the United States Federal Government supreme over the state governments.

Concurrent Powers  Powers that both the national government and the states have that are exercised independently of one another Examples: Power to tax, maintain courts, define crimes, appropriate private property for public use (eminent domain) State actions must not interfere or conflict with national laws.

Denied Powers  Those things that the government cannot do at all levels of government Examples: ■ National: Tax exports, cannot interfere with states to carry out responsibilities, habaus ■ State: treaties or alliances with foreign governments, coin money, grant titles of nobility, congressional permission to collect taxes on exports and imports or make agreements with other states. *Amendments also supply denied/limits on states and national governments.

McCulloch v. Maryland  Two Key Issues: 1. Does Congress have the power to create a national bank? 2. Can the State of Maryland tax the bank?

McCulloch v. Maryland  Article I- Legislative Branch Elastic Clause- allows Congress to “stretch its powers to do what is: ■ Necessary and Proper- ■ Expressed Power- Levy and Collect Taxes ■ Implied Power- Create a National Bank to help with levying and collecting taxes.

Maryland State Argument:  Congress had no power under the Constitution to set up a National Bank. The state believed that creating a national bank was too much of an extension of federal powers under the constitution.

Congress Argument  It was and is “necessary and proper” according to the constitution under Article I to create a national bank in order to carry out its expressed power to levy and collect taxes as well as borrow money for the operation of government. Implied power to create national bank to carry out expressed power of collecting/levy taxes.

Decision:  Supreme Court ruled in favor of Congress using Article I, the Elastic Clause, to support its ruling. Established “National Supremacy”- no state can interfere or override any laws made by the federal government. The national government is supreme over the states. Maryland could not tax the national bank because it interferes with the operation of the federal government and its ability to carry out its powers and duties according to the constitution.