Donnelly v. District of Columbia was a United States Supreme Court case that addressed the issue of whether the District of Columbia had the authority to impose a tax on the sale of goods. The plaintiff, John Donnelly, was a merchant who sold goods in the District of Columbia and was subject to the tax. He argued that the tax was unconstitutional because it violated the Due Process Clause of the Fifth Amendment. The Supreme Court held that the tax was constitutional. The Court reasoned that the Due Process Clause did not prohibit the District of Columbia from imposing a tax on the sale of goods. The Court noted that the tax was not arbitrary or oppressive, and that it was imposed in a manner consistent with the principles of taxation. The Court also noted that the tax was not excessive or unreasonable, and that it was imposed in a manner that was fair and equitable. In conclusion, the Supreme Court held that the District of Columbia had the authority to impose a tax on the sale of goods, and that the tax did not violate the Due Process Clause of the Fifth Amendment. The Court's decision established that the District of Columbia had the power to impose taxes on the sale of goods, and that such taxes did not violate the Constitution.

Justice Field delivered the dissenting opinion in Donnelly v. District of Columbia, arguing that the majority's decision was contrary to established precedent and would lead to a dangerous expansion of governmental power. He argued that the Court should not have allowed Congress to delegate its legislative powers over local matters such as taxation without any restrictions or limitations on how those powers could be used. Furthermore, he noted that allowing Congress this kind of unchecked authority would allow it to interfere with state sovereignty by enacting laws which were inconsistent with state law and thus undermine states' rights. Justice Field concluded his dissent by noting that if Congress had been given such broad discretion then there would be no limit on what it could do and "the result will be an entire subversion of our system."