In the 1902 case of Kidd v. Alabama, the U.S. Supreme Court dealt with a dispute over taxation and property rights. The plaintiff, Kidd, was an out-of-state stockholder in an Alabama corporation who argued that his stocks were being unfairly taxed by the state of Alabama because they were not physically located within its jurisdiction but rather in Georgia where he resided. He contended this violated both his Fourteenth Amendment right to equal protection under law and also went against interstate commerce laws. However, the court ruled against him stating that since the company conducted business and had assets in Alabama it was subject to local tax laws regardless of where shareholders lived or kept their certificates of ownership (stocks). This decision reinforced states' rights to levy taxes on corporations operating within their borders irrespective of where its owners reside.

In the dissenting opinion for Kidd v. Alabama, Justice Harlan argued that the majority's decision was a dangerous precedent that undermined individual rights and liberties. He contended that it allowed states to arbitrarily deny citizens their right to vote based on minor criminal offenses, which could be used as a tool of political oppression. Furthermore, he believed this ruling violated the Fourteenth Amendment’s Equal Protection Clause by enabling discriminatory practices against certain groups of people. Harlan also criticized the majority for overstepping its judicial authority and encroaching upon legislative powers by interpreting state laws in ways not intended by lawmakers themselves.