320
Opinion of the Court
foreign domicile of the taxpayer (or the taxpayer's parent) is a factor inadequate to warrant retraction of that position.
Recognizing that multiple taxation of international enterprise may occur whatever taxing scheme the State adopts, Justice O'Connor, dissenting in No. 92-1384, finds impermissible under "the [dormant] Foreign Commerce Clause" only double taxation that (1) burdens a foreign corporation in need of protection for lack of access to the political process, and (2) occurs "because [the State] does not conform to international practice." Post, at 336. But the image of a politically impotent foreign transactor is surely belied by the battalion of foreign governments that has marched to Barclays' aid, deploring worldwide combined reporting in diplomatic notes, amicus briefs, and even retaliatory legislation. See infra, at 324, n. 22; post, at 337. Indeed, California responded to this impressive political activity when it eliminated mandatory worldwide combined reporting. See supra, at 306. In view of this activity, and the control rein Congress holds, see infra, at 329-331, we cannot agree that "international practice" has such force as to dictate this Court's Commerce Clause jurisprudence. We therefore adhere to the precedent set in Container Corp.
B
We turn, finally, to the question ultimately and most energetically presented: Did California's worldwide combined reporting requirement, as applied to Barcal, BBI, and Colgate, "impair federal uniformity in an area where federal uniformity is essential," Japan Line, 441 U. S., at 448; in particular, did the State's taxing scheme "preven[t] the Federal Government from 'speaking with one voice' in international trade"? Id., at 453, quoting Michelin Tire Corp. v. Wages, 423 U. S., at 285.
1
Two decisions principally inform our judgment: first, this Court's 1983 determination in Container Corp.; and second, our decision three years later in Wardair Canada Inc. v.
Page: Index Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: October 4, 2007