In the 1951 case of Georgia Railroad & Banking Co. v. Redwine, State Revenue Commissioner, the U.S Supreme Court ruled in favor of Georgia Railroad and Banking Company (GR&BC). The company had challenged a state tax law that taxed railroad properties at higher rates than other commercial and industrial properties. GR&BC argued this was discriminatory and violated their rights under the Equal Protection Clause of the Fourteenth Amendment to the United States Constitution. The court agreed with GR&BC's argument, stating that there was no reasonable basis for taxing railroad property at a higher rate than other types of property within Georgia. Therefore, it held that such differential treatment constituted an arbitrary discrimination against railroads which contravened equal protection principles.

The dissenting opinion in the case of Georgia Railroad & Banking Co. v. Redwine, State Revenue Commissioner argued that the majority's decision was inconsistent with previous rulings and violated principles of federalism. The dissenters believed that the state tax imposed on the railroad company did not interfere with interstate commerce as claimed by the majority, but rather it was a legitimate exercise of state power to levy taxes on businesses operating within its borders. They contended that allowing states to impose such taxes is essential for their financial stability and autonomy, which are key aspects of federalism. Furthermore, they criticized the majority for overstepping its judicial role by essentially legislating from bench through creating new rules about what constitutes an interference with interstate commerce instead of interpreting existing laws or precedents.