Cite as: 522 U. S. 287 (1998)
Ginsburg, J., dissenting
the State," but it cannot tax nonresidents on their outof-state activities. Ibid. "Hence there is no obligation to accord to [nonresidents] a deduction by reason of losses elsewhere incurred." Ibid. The Court stated the principle even more clearly in Travis, 252 U. S., at 75-76: "[T]here is no unconstitutional discrimination against citizens of other States in confining the deduction of expenses, losses, etc., in the case of non-resident taxpayers, to such as are connected with income arising from sources within the taxing State . . . ."
B
Shaffer and Travis plainly establish that States need not allow nonresidents to deduct out-of-state business expenses. The application of those cases to deductions for personal expenses, however, is less clear. On the one hand, Travis' broad language could be read to suggest that in-state business expenses are the only deductions States must extend to nonresidents. On the other hand, neither Shaffer nor Travis upheld a scheme denying nonresidents deductions for personal expenses.5 A leading commentator has concluded that "nothing in either the Shaffer or Travis opinions indicates whether the Court was addressing itself to personal as well as business deductions." Hellerstein 1347, n. 165.
5 The New York law before the Court in Travis allowed residents to deduct non-business-related property losses wherever incurred, but allowed nonresidents such deductions only for losses incurred in New York. See Tr. of Record in Travis v. Yale & Towne Mfg. Co., O. T. 1919, No. 548 (State of New York, The A, B, C of the Personal Income Tax Law, pp. 12, 14, ¶¶ 42, 44). Although Travis held New York's law infirm, the Court rested its decision solely on the ground that denying personal exemptions to nonresidents violated the Privileges and Immunities Clause. See Travis, 252 U. S., at 79-82. The Court did not extend its ruling to New York's differential treatment of residents and nonresidents with regard to personal-loss deductions. See id., at 75-76 ("no unconstitutional discrimination" in confining deductions for nonresidents' losses "to such as are connected with income arising from sources within the taxing State").
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