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The decision, written by Chief Justice John Marshall, emphasized that federal law takes precedence over State law.  While States have the authority to impose taxes, States are prevented by the Supremacy Clause from taxing the federal government or entities that it creates.

The decision, written by Chief Justice John Marshall, emphasized that federal law takes precedence over State law.  While States have the authority to impose taxes, States are prevented by the Supremacy Clause from taxing the federal government or entities that it creates.

This decision, entitled ''McCulloch v. Maryland'', 17 U.S. 316 (1819),<ref>In a citation to a Court decision, it is important only to remember the year of the decision.</ref> contains this famous truth:

This decision, entitled ''McCulloch v. Maryland'', 17 U.S. 316 (1819),<ref>In a citation to a Court decision, it is necessary to remember only an approximate year of the decision.</ref> also contains this famous truth:

{{cquote|The power to tax is the power to destroy}}

{{cquote|The power to tax is the power to destroy}}

This ''McCulloch v. Maryland'' decision is important for another reason too.  The Court held that Congress has unenumerated powers that are not expressly given to it by the U.S. Constitution.  Nowhere in the Constitution is the power to create a national bank given to the federal government.  But under the '''"Elastic Clause"''' (also known as the '''"Necessary and Proper Clause"''') of the U.S. Constitution, Congress has the power to "make all laws which shall be necessary and proper for carrying into execution." That clause has been used repeatedly by Congress to make laws where it does not have an express grant of power by the Constitution to do so.

There is a third reason why the ''McCulloch v. Maryland'' decision is significant.  The Court held that Congress has unenumerated powers that are not expressly given to it by the U.S. Constitution.  Nowhere in the Constitution is the power to create a national bank given to the federal government.  But under the '''"Elastic Clause"''' (also known as the '''"Necessary and Proper Clause"''') of the U.S. Constitution, Congress has the power to "make all laws which shall be necessary and proper for carrying into execution" other valid federal laws.  This clause has been used repeatedly by Congress to make laws where it does not have an express grant of power by the Constitution to do so.

The Supremacy Clause continues to invalidate state laws.  In 2011, the Supreme Court ruled that the Federal Arbitration Act (which requires that courts generally enforce [[arbitration]] agreements) preempts state laws that have the effect of requiring [[class action]] procedures to be available in consumer disputes.  ''AT&T Mobility v. Concepcion'', 131 S.Ct. 1740 (2011).  And in 2012, the Supreme Court prevented Arizona from enforcing its immigration enforcement bill SB 1070, stating that the federal government has taken over the exclusive area of enforcement of immigration law, and therefore Arizona cannot enforce some of the provisions of SB 1070.  ''Arizona v. U.S.'', 132 S.Ct. 2492 (2012)

The Supremacy Clause continues to invalidate state laws.  In 2011, the Supreme Court ruled that the Federal Arbitration Act (which requires that courts generally enforce [[arbitration]] agreements) preempts state laws that had the effect of allowing the public to bypass arbitration agreements with [[class action]] lawsuits.  ''AT&T Mobility v. Concepcion'', 131 S.Ct. 1740 (2011).  And in 2012, the Supreme Court prevented Arizona from enforcing its immigration enforcement bill Senate Bill ("SB") 1070, by holding that the federal government has taken over enforcement of immigration law, and therefore Arizona cannot enforce parts of its SB 1070.  ''Arizona v. U.S.'', 132 S.Ct. 2492 (2012).

== "The Power to Tax" ==

== "The Power to Tax" ==