The case of McCulloch v. Maryland was decided by the U.S. Supreme Court in 1819. It addressed the balance of power between the federal government and the states. The state of Maryland attempted to tax the Second Bank of the United States, which was established by Congress. The bank's cashier, James McCulloch, refused to pay the tax, leading to a legal dispute. The Supreme Court ruled in favor of McCulloch, stating that the federal government had the authority to create a national bank under the Necessary and Proper Clause of the Constitution. This decision reinforced the principle of federal supremacy over state laws.