In the case of Exxon Corp. v. Department of Revenue of Wisconsin, 1979, the U.S Supreme Court ruled in favor of Exxon Corporation against the state's attempt to tax it on dividends received from foreign subsidiaries. The court held that this taxation violated the Commerce Clause as it exposed interstate commerce to multiple tax burdens and thus was discriminatory towards out-of-state businesses. The ruling stated that a state could not impose taxes on income earned outside its borders unless there is a significant connection between such income and taxpayers' activities within the state. This decision reinforced principles established by earlier cases concerning limitations imposed by federal law on states' power to tax interstate commerce.

In the dissenting opinion for Exxon Corp. v. Department of Revenue of Wisconsin, Justice Brennan disagreed with the majority's decision that Wisconsin's tax on gross receipts did not violate the Commerce Clause. He argued that this type of taxation could potentially lead to multiple taxation by different states and thus burden interstate commerce, which is contrary to what the Commerce Clause intends to prevent. Furthermore, he pointed out that there was no clear evidence showing how much business activity occurred within or outside Wisconsin; therefore it was unfair for all gross receipts from interstate sales to be taxed by one state alone without considering where these activities took place. This lack of apportionment in his view violated due process rights as well because businesses were being subjected to taxes beyond their fair share based on their actual connection with a particular state.