In the case of McCullough v. Maryland (1819), the Supreme Court 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 president, James McCullough, refused to pay the tax, leading to a legal dispute. The Supreme Court, led by Chief Justice John Marshall, ruled that the federal government had the authority to create a national bank and that states could not tax it. This decision reinforced the principle of federal supremacy over state laws and clarified the scope of congressional powers.