Q. Does this mean that eventually this person only pays tax to one state?
A. No, not exactly. What it means is: the person is not double taxed. He pays the same amount* of tax as if he lived and worked in the same state; he just splits the money between the two states and has the hassle (and cost) of filing two state tax returns.
*Sometimes the credit for the home state is not 100% of the tax paid to the work state, so there may be a small amount of double taxation. Living in IN and working in MD, would usually be one of those cases.
