Final answer:
The Supreme Court ruled in McCulloch vs Maryland that a state cannot tax the federal government, establishing the principle of national supremacy and confirming the implied powers of the federal government under the supremacy clause.
Step-by-step explanation:
In the landmark case of McCulloch vs Maryland, the Supreme Court determined that a state cannot tax the federal government. This decision, made in 1819, addressed the conflict over the taxation of the Second Bank of the United States by the state of Maryland. The Court's ruling, under the leadership of Chief Justice John Marshall, was based on the principles of national supremacy and the necessary and proper clause of the Constitution, which allow for implied powers. The doctrine established in this case indicated that federal laws are the supreme law of the land and that states cannot interfere with or tax the legitimate activities of the federal government as it would go against the supremacy clause of Article VI of the Constitution, effectively confirming that the power to tax is the power to destroy.