In the case of Banker Brothers Company v. Commonwealth of Pennsylvania, 1911, the U.S Supreme Court was tasked with determining whether a state could impose a tax on an out-of-state corporation for doing business within its borders. The Banker Brothers Company, based in New York but conducting significant business operations in Pennsylvania, challenged the constitutionality of such taxation by arguing it violated their rights under both the Due Process and Commerce Clauses of the Constitution. However, after careful consideration, the court ruled against them. It held that states have broad authority to levy taxes on businesses operating within their jurisdiction as long as those taxes are not discriminatory or burdensome to interstate commerce. This decision reinforced states' power over local affairs and affirmed their right to generate revenue through reasonable taxation schemes.

In the dissenting opinion for Banker Brothers Company v. Commonwealth of Pennsylvania, it was argued that the tax imposed by Pennsylvania on foreign corporations doing business within its borders was not a violation of the Equal Protection Clause or Commerce Clause of the U.S. Constitution. The dissenting justices believed that states have broad powers to regulate and tax businesses operating within their jurisdiction, including those incorporated in other states. They contended that this power is essential for preserving state sovereignty and protecting local economies from potential harm caused by out-of-state corporations. Furthermore, they disagreed with the majority's interpretation of "doing business," arguing that selling goods through independent contractors should be considered as such because these activities generate substantial income for foreign companies at little cost to them while potentially harming local competitors who are subject to higher taxes and regulations.