In Calder v. The State of Michigan, the U.S. Supreme Court ruled in 1910 that a state has the power to tax inheritances without violating the Fourteenth Amendment's Due Process Clause or interfering with federal powers. The case arose when William Calder, an Illinois resident and executor of his father's estate, contested Michigan’s inheritance tax on grounds that it was unconstitutional because his father had been domiciled in Illinois at death and not Michigan where some property was located. However, the court upheld Michigan's right to impose such taxes as they were within its jurisdictional authority over property within its borders regardless of domicile status elsewhere.

In the dissenting opinion for Calder v. The State of Michigan, it was argued that the state's tax on inheritances did not violate the Fourteenth Amendment as claimed by the plaintiff. The justice disagreed with majority’s interpretation of due process and equal protection clauses in relation to this case. He contended that inheritance is a privilege granted by law rather than a natural right, thus states have authority to regulate or even abolish it if they see fit. Therefore, imposing taxes on such privileges does not constitute deprivation of property without due process nor does it deny equal protection under laws since all beneficiaries are taxed equally according to their respective shares in estate regardless of their relationship with decedent. Furthermore, he pointed out that many other states had similar inheritance tax laws which were upheld by courts against constitutional challenges hence there was no reason why Michigan's law should be treated differently.