New Jersey Hits Maryland Company With Tax For Allowing Telecommuting

Tax Foundation reports:

This morning's story involves a Maryland company that decided to let an employee telecommute from her home in New Jersey. New Jersey ruled earlier this month (PDF) that the company is now subject to the New Jersey corporate income tax because of that decision.

Craziness, I say. We can probably all agree that the employee in question should be paying her individual income tax to New Jersey since she's a resident of the state and using its services. But the company's corporate income tax? Should New Jersey get a piece despite the company having no contact with the state other than this one telecommuting employee? New Jersey's answer to that question is an obvious one, but is it the right answer?

Government greed.