The case Whitney et al., Executors, et al. v. State Tax Commission of New York in 1939 revolved around the constitutionality of a state tax law that imposed an estate transfer tax on property located outside the state but owned by a resident within it at their time of death. The plaintiffs were executors for two estates who argued that this taxation violated both Due Process and Commerce Clauses under the Fourteenth Amendment as well as federal laws governing interstate commerce. However, the Supreme Court upheld New York's right to levy such taxes, stating that they did not infringe upon constitutional rights or federal jurisdiction over interstate commerce since they only applied to residents' out-of-state properties after their deaths - when these assets effectively became part of their in-state estates subject to local taxation rules.

In the dissenting opinion for Whitney et al., Executors, et al. v. State Tax Commission of New York, Justice McReynolds disagreed with the majority's decision to uphold a tax on intangible property held by non-residents in trust within New York state. He argued that this was an unconstitutional violation of due process rights under the Fourteenth Amendment because it imposed a direct tax on property located outside of the state's jurisdiction and control. The justice contended that such taxation is inherently unfair as it allows states to levy taxes on properties they do not protect or provide services for, thereby overstepping their authority and infringing upon individual rights without providing any corresponding benefits or protections in return.