The U.S. Supreme Court case Orient Insurance Company v. Board of Assessors for the Parish of Orleans in 1910 revolved around a dispute over taxation between an insurance company and local tax assessors. The Orient Insurance Company, based in Connecticut, argued that it was unconstitutional for the state of Louisiana to impose taxes on premiums collected outside of the state but remitted to its home office within Louisiana. The court ruled against the insurance company, stating that as long as business is conducted within a state's borders and profits are realized there, those earnings can be taxed by that particular state regardless where they were initially generated from or where their head office is located at.

In the dissenting opinion for Orient Insurance Company v. Board of Assessors for the Parish of Orleans, Justice Holmes argued that the majority's decision to exempt foreign corporations from local taxation was incorrect. He contended that there is no constitutional principle or precedent barring a state from taxing property within its jurisdiction owned by a foreign corporation, even if it also taxes the capital stock of such corporations in their home states. According to him, double taxation does not violate due process as long as each tax is based on property within the taxing state's jurisdiction and does not discriminate against interstate commerce. The fact that some companies might be taxed twice on different aspects of their business operations did not make this unconstitutional; rather, it was an inevitable consequence of our federal system where both states and national government have power to tax.