NATIONAL GOVERNMENT WAS ENCROACHING ON STATE POWERS (SUPREME COURT
DECISIONS).
A. McCULLOCH v. MARYLAND
ISSUE WAS MORE THAN TAXES (McCULLOCH WAS ORDERED TO PAY THE TAXES)
KEY ISSUES:
1. DID CONGRESS HAVE THE AUTHORITY TO CHARTER AND CONTRIBUTE CAPITAL
TO THE BANK?
NECESSARY AND PROPER CLOSE
2. IF BANK WAS UNCONSTITUTIONAL, COULD THE STATE TAX IT?
3. THUS WAS A STATE ACTION IN CONFLICT WITH FED ACTION INVALID UNDER
THE SUPREMACY CLAUSE?
BUT THERE WAS NO PROVISION IN THE CONSTITUTION GRANTING FEDS
EXPRESSED POWER TO CREATE A BANK??!!
"NECESSARY AND PROPER CLAUSE"
CREATION OF THE BANK HELPS FED EXERCISE ITS EXPRESSED POWERS
- THUS IT WAS IMPLIED IN THE CONSTITUTION (Chief justice Marshall Doctrine).
B. GIBBONS v. OGDEN:
KEY ISSUES:
1. COMMERCE CLAUSE - FRAMERS NEVER DEFINED COMMERCE!
2. POWER TO REGULATE INTRA OR INTER STATE COMMERCE?
3. NATIONAL GOVERNMENT HAS EXCLUSIVE POWER TO REGULATE INTERSTATE COMMERCE
(Marshall)
DUAL FEDERALISM:
STATES AND NATIONAL GOVERNMENT MORE OR LESS EQUALS
DISTINCT FUNCTIONS AND RESPONSIBILITIES
COOPERATIVE FEDERALISM vs. The Supreme Court:
NEW FEDERALISM - (Check textbook! - READ THE BOOK!)
FEDERAL PREEMPTION OF STATE POWERS - since 1940s
ROOTED IN SUPREMACY CLAUSE - NATIONAL LAWS TAKE PRECEDENCE
FISCAL SIDE OF FEDERALISM
Mandates
Grants
Categorical grants
Block Grants