In the case of National Leather Company v. Commonwealth of Massachusetts, 1927, the Supreme Court ruled in favor of Massachusetts. The issue at hand was whether a state could impose an excise tax on corporations based on their capital stock value without violating the Due Process Clause or Equal Protection Clause of the Fourteenth Amendment. The National Leather Company argued that this tax was unconstitutional as it did not take into account debts and other liabilities which might reduce a corporation's actual worth, thus creating inequality among businesses and infringing upon their rights to due process. However, the court held that states have broad powers to levy taxes for revenue purposes and found no violation in this instance because all corporations were taxed equally under this law regardless of their debt status. Therefore, there was no discrimination against any particular group or class.

In the dissenting opinion for National Leather Company v. Commonwealth of Massachusetts, Justice Holmes argued that the state had a right to regulate business within its borders and protect its citizens from potential harm caused by corporations. He believed that businesses should be held accountable for their actions and face penalties if they violate laws or regulations set forth by the state. Furthermore, he disagreed with the majority's interpretation of due process rights under the Fourteenth Amendment, arguing that it was too broad and could potentially hinder states' ability to govern effectively. In his view, while corporations have certain protections under this amendment, these do not supersede a state's power to enforce its own laws in order to safeguard public welfare.