Final answer:
In McCulloch v. Maryland, the Supreme Court ruled that the federal government's ability to create a national bank was supported by implied powers and that states could not tax federal entities, reinforcing federal supremacy.
Step-by-step explanation:
The Supreme Court case McCulloch v. Maryland addressed the constitutionality of the Second Bank of the United States and the scope of federal power. The state of Maryland imposed a tax on the bank, which the bank, represented by James McCulloch, refused to pay. This led to a legal dispute over the balance of power between state and federal authorities.
The pivotal Supreme Court ruling established two key principles:
- The concept of implied powers under the necessary and proper clause, which allows Congress to use means not explicitly listed in the Constitution if they are essential to performing its delegated powers.
- The principle of national supremacy articulated in Article VI, the Supremacy Clause, which asserts that federal laws take precedence over state laws when in conflict.
Chief Justice John Marshall's opinion in the case underscored the supremacy of federal legislation over state laws, highlighting "that the power to tax is the power to destroy" in reference to states taxing federal institutions. As a result, the Maryland law taxing the Second Bank of the United States was deemed unconstitutional.