WASHINGTON -- In a case that could have national ramifications, the Supreme Court is being asked to decide whether Iowa's corporate tax unfairly burdens U.S. firms that have foreign subsidiaries.

The case, Kraft General Foods Inc. v. Iowa Department of Revenue and Finance, tests whether the tax violates the Constitution's foreign commerce clause -- a provision giving Congress sole power to regulate foreign commerce. The provision is understood to ban state taxes that discriminate against firms that also do business in other countries.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.