What significant power was established in McCulloch v. Maryland?

The case of McCulloch v. Maryland, decided in 1819, was a landmark Supreme Court decision that affirmed the implied powers of Congress and the supremacy of federal law over state law. The correct answer highlights the critical power established by the ruling: Congress indeed has the authority to create a National Bank.

This decision was rooted in the interpretation of the Necessary and Proper Clause of the Constitution, which allows Congress to enact laws that are necessary for carrying out its enumerated powers. The establishment of a National Bank was deemed crucial for managing the nation’s finances and facilitating economic stability. The ruling reinforced the idea that the federal government could take actions not explicitly outlined in the Constitution, as long as they were in pursuit of its constitutional duties.

The case also underscored that states cannot tax federal institutions, illustrating the supremacy of federal law. This context helps clarify why the assertion that Congress can create a National Bank is accurate and reflects the broader implications of the ruling on federal authority and state limitations.