Final answer:
The McCulloch v. Maryland case established federal supremacy over state law by upholding the creation of the Second Bank of the United States and ruling that states cannot tax federal entities.
Step-by-step explanation:
Summary of McCulloch v. Maryland
In McCulloch v. Maryland (1819), the Supreme Court ruled on the constitutionality of the Second Bank of the United States. The state of Maryland had imposed a tax, challenging the federal bank's authority. However, the Supreme Court, led by Chief Justice John Marshall, held that the federal government had the implied power to create the bank under the 'necessary and proper' clause of the Constitution and that states could not tax federal institutions, referencing the supremacy clause. This affirmed the supremacy of federal over state law and supported the concept of implied powers of the federal government.
Importance of McCulloch v. Maryland
The McCulloch v. Maryland case was significant because it established two constitutional principles. First, it confirmed the federal government's authority to establish a national bank, an implied power under the 'necessary and proper' clause. Second, it proclaimed that states could not tax or impede the functions of the federal government, thereby cementing the federal government's authority over the states in certain matters. This ruling helped to define the balance of power between the state and federal governments, a foundational aspect of federalism in the United States.