WASHINGTON -- The Supreme Court on Friday struck down a sachusetts levy on dairy products sold within the state, saying it is effectively a discriminatory tax on milk from out-of-state producers.

The 7-2 decision has sweeping implications for state subsidies of local business, Chief Justice William Rehnquist said in a dissent. In an opinion concurring with the majority, Justice Antonin Scalia said that the ruling is "a broad expansion of current law."

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