Mahlon Pitney

“ The question presented for our decision is whether the action of Virginia in subjecting its domestic corporations which transact business within the state to a tax on all their income, wherever earned, while exempting from the tax those domestic corporations which transact no business within the state, is so clearly arbitrary or invidious, as to fall within the constitutional prohibition. ”

“ I can conceive of a reason for differentiating in respect to taxation between the two classes of domestic corporations. The following reason is, in my opinion, substantial, and shows that the classification is not illusory, nor the state's actio necessarily arbitrary or invidious.
It is a matter of common knowledge that some states have, in the past, made the granting of charters to nonresidents for companies, which purpose transacting business wholly without the state of incorporation, an important source of revenue. ”

“ Every private domestic business corporation makes a substantial contribution to the revenues of Virginia, even if it is not subjected to property or income taxes. It pays an organization tax on incorporation, and annually thereafter both a registration fee and an annual franchise tax. ”