In the case of Eagle Insurance Company v. Ohio, 1893, the U.S. Supreme Court was tasked with determining whether an insurance company incorporated in one state but doing business in another could be taxed by that second state. The Eagle Insurance Company, incorporated in Connecticut but operating extensively within Ohio, argued against its taxation by Ohio on constitutional grounds. However, the court ruled unanimously against them and upheld Ohio's right to tax out-of-state corporations conducting business within their borders as long as it did not discriminate against interstate commerce or violate any federal laws or treaties. This decision reinforced states' rights to regulate and tax businesses operating within their jurisdiction regardless of where they were originally incorporated.

In the dissenting opinion for Eagle Insurance Company v. Ohio, it was argued that the majority's decision to uphold a tax on foreign insurance companies operating in Ohio was unconstitutional. The dissent contended that this tax violated the Equal Protection Clause of the Fourteenth Amendment by unfairly discriminating against out-of-state businesses. They believed that all corporations doing business within a state should be treated equally under its taxation laws, regardless of where they were incorporated or headquartered. Furthermore, they expressed concern about potential negative economic implications if states could freely impose discriminatory taxes on foreign corporations without constitutional constraints.