Cite as: 512 U. S. 298 (1994)
Opinion of the Court
Florida Dept. of Revenue, 477 U. S. 1 (1986). Container Corp. held that California's worldwide combined reporting requirement, as applied to domestic corporations with foreign subsidiaries, did not violate the "one voice" standard. Container Corp. bears on Colgate's case, but not Barcal's or BBI's, to this extent: "[T]he tax [in Container Corp.] was imposed, not on a foreign entity . . . , but on a domestic corporation." 463 U. S., at 195.19 Other factors emphasized in Container Corp., however, are relevant to the complaints of all three taxpayers in the consolidated cases now before us.20 Most significantly, the Court found no "specific indications of congressional intent" to preempt California's tax:
"First, there is no claim here that the federal tax statutes themselves provide the necessary pre-emptive force. Second, although the United States is a party to a great number of tax treaties that require the Federal Government to adopt some form of 'arm's-length' analysis in taxing the domestic income of multinational enterprises, that requirement is generally waived with respect to the taxes imposed by each of the contracting nations on its own domestic corporations. . . . Third, the tax treaties into which the United States has entered do not generally cover the taxing activities of subnational governmental units such as States, and in none of the
19 Container Corp. noted: "We recognize that the fact that legal incidence of a tax falls on a corporation whose formal corporate domicile is domestic might be less signifi-cant in the case of a domestic corporation that was owned by foreign interests. We need not decide here whether such a case would require us to alter our analysis." 463 U. S., at 195, n. 32.
20 Container Corp. observed that "the tax here does not create an automatic 'asymmetry' . . . in international taxation," id., at 194-195, quoting Japan Line, 441 U. S., at 453—i. e., it does not inevitably lead to double taxation. See supra, at 319-320, and n. 17. Furthermore, Colgate, Barcal, and BBI are "without a doubt amenable to be taxed in California in one way or another," and "the amount of tax [they] pa[y] is much more the function of California's tax rate than of its allocation method." 463 U. S., at 195.
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