State Taxing Authorities Game of Chess

[Corduroy Frog]

Neighboring states want to maximize their revenue by whatever means are necessary.  Some are downright ugly - NY doesn't like NJ, dating back to the Giants playing in the Meadowlands.  Rhode Island refers to their neighbor as "Taxachusetts", but the folks in Boston says Rhode Island taxes are even worse.  Three states are on the DelMarva so I dunno what they do.

Where I live has no income tax, but all 8 of our neighbors have them, so I have occasion to do many states from time to time. 

Assume Megamanufacturing is headquartered in California, and one of their factories is in Missouri.  The factory workers in Missouri don't have California taxes.  However one of the employees in MO is working from home. This could be "California Source Income" thus is subject to California taxes.  But neither this work-from-home person nor the factory workers have an office in California, other than the home office.  So what's the difference??

[For these purposes, ignore "credit for taxes paid to another state" or "states with no income tax".  This is another discussion].

Is there any consistence between these states?  For example, Michigan has no reciprocity with Indiana, but has reciprocity with Kentucky, which doesn't even border Michigan. Has the Supreme Court ever got involved to assure consistent treatment?  Probably not, although they did reverse themselves on sales tax charged out-of-state.

Do any of the board members have feelings on this, or are any of you aware of any legislation anywhere that can break the Gordian Knot?