Just because it currently is that way doesn't mean it should be that way. This tax situation explicitly penalizes and actively discourages two guys starting up

Just because it currently is that way doesn't mean it should be that way. This tax situation explicitly penalizes and actively discourages two guys starting up a single business in their respective garages across state lines. Imagine if Jobs and Woz were starting today and lived in CA and OR. That version of Apple would have never gotten off the ground due to idiotic laws like this.