In the case of United States Fidelity & Guaranty Company v. State of Oklahoma et al., 1918, the U.S. Supreme Court ruled in favor of the state's right to tax foreign corporations operating within its borders. The United States Fidelity and Guaranty Company, a Maryland corporation doing business in Oklahoma, challenged an Oklahoma law that imposed higher taxes on out-of-state companies than those levied on domestic businesses. The company argued this was discriminatory and violated both due process and equal protection clauses under the Fourteenth Amendment. However, the court upheld Oklahoma's taxation scheme as constitutional stating it did not infrarily discriminate against interstate commerce or violate any provision of federal constitution since states have broad power to determine their own fiscal policies including taxing structures for raising revenue.

The dissenting opinion in the case of United States Fidelity & Guaranty Company v. State of Oklahoma argued that the majority's decision to uphold an Oklahoma law requiring out-of-state insurance companies to deposit securities with the state before doing business there was unconstitutional. The dissenters believed this law violated both the Due Process and Equal Protection Clauses of the Fourteenth Amendment, as it unfairly discriminated against non-resident corporations by imposing on them a burden not placed on resident corporations. They also contended that such laws could lead to retaliatory legislation from other states, creating a hostile environment for interstate commerce. Furthermore, they disagreed with the majority's interpretation of previous court decisions regarding similar issues and felt those cases should have led to striking down this particular statute instead.