In the case of E.I. Du Pont De Nemours & Co. et al. v. Collins et al., 1976, the Supreme Court ruled on a Texas tax statute that imposed a franchise tax on corporations for "doing business" in the state based on their net worth and capital stock value, but exempted domestic corporations' federal obligations from this calculation while including those of foreign (out-of-state) corporations like DuPont's subsidiary company operating in Texas. The court held that this differential treatment violated both the Equal Protection Clause and Commerce Clause of U.S Constitution as it discriminated against out-of-state businesses by taxing them more heavily than local ones without any substantial reason or justification related to public interest or policy objectives served by such discrimination.

In the dissenting opinion for E.I. Du Pont De Nemours & Co. et al. v. Collins et al., Justice William J Brennan Jr, joined by Justices Byron White and Thurgood Marshall, argued that Texas's tax scheme did not violate the Commerce Clause of the U.S Constitution as it did not discriminate against interstate commerce nor was it excessively burdensome on such commerce to be considered unconstitutional under Complete Auto Transit Inc v Brady (1977). The justices contended that there was no evidence showing this tax had a discriminatory effect or purpose against out-of-state manufacturers like DuPont; rather, they believed it merely reflected a legitimate state interest in taxing businesses benefiting from local services and protections provided by Texas law enforcement agencies and courts. They also disagreed with the majority’s view about multiple taxation risks due to lack of concrete proof demonstrating such risk existed or would occur because of this tax.