Austin v. New Hampshire
In Austin v. New Hampshire, 420 U.S. 656 (1975), a case involving a constitutional challenge to New Hampshire's commuter tax, the court noted that New Hampshire law required the tax at issue to be withheld from the wages of nonresidents who commuted into New Hampshire for work.
In footnote 4, the court recognized that withholding in an amount greater than the current tax rate deprived nonresidents of the use value of the excess withholding.
The court determined only that such loss established the nonresidents' status as parties adversely affected for standing purposes.
The court did not address the issue of whether the withholding provision was unconstitutional.
In that case, the challenge was to the tax, not to the collection method.