In the case of Crew Levick Company v. Commonwealth of Pennsylvania, 1917, the Supreme Court examined whether a state could impose a tax on foreign corporations for the privilege of doing business within its borders. The plaintiff, Crew Levick Company - an oil company incorporated in New Jersey but operating extensively in Pennsylvania - argued that such taxation was unconstitutional as it violated both due process and equal protection clauses under Fourteenth Amendment. However, the court ruled against them stating that states have broad powers to levy taxes on businesses operating within their jurisdiction even if they are based out-of-state. It held that there is no constitutional impediment preventing states from taxing foreign corporations for conducting business activities within their territory provided these companies enjoy benefits and protections offered by those states' laws and government services.

In the dissenting opinion for Crew Levick Company v. Commonwealth of Pennsylvania, it was argued that the tax imposed by Pennsylvania on foreign corporations doing business within its borders is unconstitutional. The dissenting justices believed that this tax violated both the Due Process Clause and the Commerce Clause of the U.S Constitution. They contended that a state cannot impose a tax on an entity simply because it does business within its boundaries; rather, there must be some direct benefit conferred upon or protection provided to such an entity by the state in order for taxation to be justified. Furthermore, they asserted that this type of taxation interferes with interstate commerce as it creates barriers and burdens for out-of-state companies seeking to do business in Pennsylvania. Therefore, they concluded that such discriminatory treatment towards foreign corporations is not permissible under constitutional law.