In 1819, Maryland attempted to impose a tax on the Second Bank of the United States, asserting its state power to regulate the bank's operations within its borders. This led to the landmark Supreme Court case McCulloch v. Maryland, which established that states could not tax federal institutions, reinforcing the supremacy of federal law over state law. The Court ruled that Congress had the authority to create the bank under the Necessary and Proper Clause, affirming the federal government's implied powers. Thus, Maryland's attempt to exert power over the federal bank was ultimately deemed unconstitutional.
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