Cite as: 512 U. S. 186 (1994)
Syllabus
Indeed, by conjoining a tax and a subsidy, Massachusetts has created a program more dangerous to interstate commerce than either part alone: The Commonwealth's political processes cannot be relied on to prevent legislative abuse where dairy farmers, one of the powerful in-state interests that would ordinarily be expected to lobby against the order premium as a tax raising milk prices, have been mollified by the subsidy. Pp. 198-202. (c) Respondent's second argument—that the order is not discriminatory because the dealers who pay premiums are not competitors of the farmers who receive disbursements—cannot withstand scrutiny. The imposition of a differential burden on any part of the stream of commerce—from wholesaler to retailer to consumer—is invalid because a burden placed at any point will result in a disadvantage to the out-of-state producer. Pp. 202-203. (d) If accepted, respondent's third argument—that the order is not protectionist because the program's costs are borne only by Massachusetts dealers and consumers and its benefits are distributed exclusively to Massachusetts farmers—would undermine almost every discriminatory tax case. State taxes are ordinarily paid by in-state businesses and consumers, yet if they discriminate against out-of-state products they are unconstitutional. More fundamentally, the argument ignores the fact that Massachusetts dairy farmers are part of an integrated interstate market. The obvious impact of the order on out-of-state production demonstrates that it is simply wrong to assume that it burdens only in-state consumers and dealers. Pp. 203-204. (e) Acceptance of respondent's final argument—that the order's incidental burden on commerce is justified by the local benefit of saving the financially distressed dairy industry—would make a virtue of the vice that the rule against discrimination condemns. Preservation of local industry by protecting it from the rigors of interstate competition is the hallmark of the economic protectionism that the Commerce Clause prohibits. Pp. 204-207. 415 Mass. 8, 611 N. E. 2d 239, reversed.
Stevens, J., delivered the opinion of the Court, in which O'Connor, Kennedy, Souter, and Ginsburg, JJ., joined. Scalia, J., filed an opinion concurring in the judgment, in which Thomas, J., joined, post, p. 207. Rehnquist, C. J., filed a dissenting opinion, in which Blackmun, J., joined, post, p. 212.
Steven J. Rosenbaum argued the cause for petitioners. With him on the briefs were Michael L. Altman and Robert A. Long, Jr.
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