Refused to pay state taxes
Said Congress could create banks
Passed a law taxing federal banks
Said Congress couldn't create banks
Mculloch refused to pay taxes
Maryland passed a law taxing federal banks
Mculloch Vs Maryland was the a case before the Supreme court in 1819 and the court decided in favor of Mculloch. The court took a decision on whether the Congress had the power to create national banks and whether the state of Maryland interfered in the powers of Congress by deciding to tax the banks.
before 1819 differences of opinion existed between the members of the Congress on whether federal governments should be allowed to create and run a national Bank. Despite oppositions,National Bank started working in the US and the state of Maryland was dissatisfied. They imposed taxes on the Baltimore branch of the Bank of united States and the bank's cashier James W Mculloch refused to pay the taxes and the conflict was resolved by the Supreme court decision that came in favor of Mculloch in 1819.