In the 1909 case of WM. J. Moxley, a Corporation v. Hertz, United States Collector, the U.S Supreme Court dealt with issues related to taxation and import duties on goods imported from foreign countries into the United States. The plaintiff was a corporation that had imported eggs from China and was disputing an additional duty imposed by customs officials under section 7 of the Tariff Act of July 24th, 1897 which levied extra charges on items not specifically enumerated in previous sections of the act but similar or comparable to those that were listed. The court ruled against Moxley's claim for refund arguing that although eggs were not explicitly mentioned in any other part of this tariff law they could be classified as "poultry" which is subject to tax according to section seven hence justifying their inclusion within its purview.

In the dissenting opinion for WM. J. Moxley, A Corporation, v. Hertz, United States Collector (1909), it was argued that the tax imposed on oleomargarine colored to resemble butter should not be considered a direct tax but rather an excise or duty. The justice contended that this type of taxation is within Congress's constitutional power and does not require apportionment among states according to their population as required by Article I Section 2 Clause 3 and Article I Section 9 Clause 4 of the U.S Constitution for direct taxes. He further stated that such a tax aims at regulating commerce or business transactions involving products like oleomargarine which are subject to manipulation in order to deceive consumers about their true nature - hence it falls under Congress' authority over interstate commerce regulation.