In the 1932 case of Edelman, State Treasurer, et al. v. Boeing Air Transport, Inc., the U.S Supreme Court ruled in favor of Boeing Air Transport (now United Airlines). The dispute arose when Illinois imposed a tax on gross receipts from intrastate transportation by air which was challenged by Boeing as unconstitutional. The company argued that this taxation violated the Commerce Clause of the Constitution because it placed an undue burden on interstate commerce and was discriminatory against out-of-state businesses. However, Illinois countered that they had every right to impose such taxes for services rendered within their state boundaries. The Supreme Court sided with Boeing stating that while states have authority to tax businesses operating within their borders, these taxes must not discriminate against or unduly burden interstate commerce - a power reserved for Congress under the Commerce Clause. Therefore, taxing gross receipts from both intra- and inter-state flights disproportionately affected companies like Boeing who conducted significant business across state lines compared to those only operating within Illinois.

In the dissenting opinion for Edelman v. Boeing Air Transport, Inc., Justice Brandeis argued that the majority's decision to uphold a tax on gross receipts from interstate commerce was inconsistent with previous rulings of the Court and violated principles of federalism. He contended that such a tax placed an undue burden on interstate commerce, which is constitutionally protected under the Commerce Clause. Furthermore, he believed this ruling could potentially open up avenues for states to impose discriminatory or excessive taxes on out-of-state businesses engaged in interstate trade. The justice also expressed concern about potential double taxation if other states followed suit and imposed similar taxes based upon gross receipts derived from activities within their borders.