In the case of Michigan National Bank et al. v. Michigan et al., 1960, the U.S Supreme Court was tasked with determining whether a state could tax national banks on their shares at rates higher than those applied to other financial institutions within that same state. The court held that such differential treatment violated federal law, specifically Section 5219 of the Revised Statutes which stipulates equal taxation for national and state banking associations. This decision reaffirmed previous rulings by asserting that states cannot impose discriminatory taxes on federally chartered entities like national banks in comparison to similar local or state-chartered institutions.

In the dissenting opinion for Michigan National Bank et al. v. Michigan et al., Justice Frankfurter, joined by Justices Harlan and Whittaker, argued that the majority's decision was inconsistent with previous rulings of the Court regarding interstate commerce and taxation. They contended that a state cannot tax an activity simply because it is carried out within its borders if it is part of a larger process which takes place across multiple states; in this case, banking operations conducted on a national scale. The dissenters believed that such taxes could potentially interfere with interstate commerce by placing undue burdens on businesses operating in more than one state. Furthermore, they expressed concern about potential discrimination against out-of-state entities as local governments might be tempted to levy heavier taxes on them compared to their domestic counterparts.