Facts of McCulloch v. Maryland:
The state of Maryland had a desire to limit the powers of the federal government. A tax was placed on all notes the originated with banks chartered outside of the state. The Second Bank of the United States, a federal entity was the target of this attack. When James McCulloch refused to pay the tax and the court eventually went before the Supreme Court. The Court decided that the Second Bank of the United States was "necessary and proper" for the federal government to exercise its duties. Therefore, the bank was constitutional and the state of Maryland could not tax its activities.
Significance of McCulloch v. Maryland:
This landmark case declared that the United States government had implied powers as well as those specifically listed in the Constitution. The decision provided the avenue for the federal government to expand or evolve its powers to meet an ever-changing world.