In the case of Bob-Lo Excursion Co. v. Michigan in 1947, the U.S Supreme Court ruled that a state could not impose a tax on a company for engaging in interstate commerce if it was already paying an identical tax to another state. The Bob-Lo Excursion Company operated ferry boats between Detroit, Michigan and Bois Blanc Island (also known as Boblo Island) located in Ontario, Canada. The State of Michigan imposed taxes on the company's gross receipts from its operations which included ticket sales and concessions sold onboard during these excursions. However, since part of their journey took place outside U.S waters - specifically when they were docked at Bois Blanc Island - this constituted international travel or "interstate commerce". As such, under federal law governing interstate commerce activities which prohibits states from taxing businesses involved in such trade if they are already being taxed by another jurisdiction (in this case Canada), the court held that Michigan’s taxation was unconstitutional.

In the dissenting opinion for Bob-Lo Excursion Co. v. Michigan, Justice Robert H. Jackson argued that the majority's decision to uphold a state law prohibiting racial discrimination in public accommodations was an overreach of federal power and violated principles of states' rights. He contended that while he personally found such discriminatory practices abhorrent, it was not within the purview of the Supreme Court to dictate social policy or interfere with local laws unless they were clearly unconstitutional. Furthermore, he expressed concern about potential unintended consequences from this ruling on other areas where states have traditionally had autonomy to regulate commerce and business practices within their borders.