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The US Supreme Court concluded that Congress had the right to charter a federal bank, as an implied power (also called unenumerated powers) of Article I, Section 8, because the bank was being used to further Congress' constitutional authority to tax and distribute funds.

The Court also held that the Supremacy Clause, which subordinates state laws to federal and US Constitutional law, prohibited the states from taxing any constitutional means the federal government uses to execute its powers.

Case Citation:

McCulloch v. Maryland, 17 US 316 (1819)

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A government in which powers are divided between a national government and state government with the national government being supreme is called?

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