Presumably the prison is providing the "office" where the person works from, the Internet connection, etc.

They need money to pay for oversight. Any time prisoners talk to someone on the outside, it's a potential conduit for contraband or organized crime.

"No cut" is reasonable, but also "Some cut" is reasonable. However while arguing that "no cut" should be mandatory is reasonable, given that "no cut" would itself be reasonable, it is probably not pragmatic. Therefore in order to best support this kind of thing one should determine exactly how much "some cut" should be.

I disagree. The cut should support the program itself and then further offset taxpayer expenses related to housing, feeding, and caring for the prisoner. I could even see a case for taking it as a way of ensuring it was saved and returned at release.

Don't you suppose that it's "fair" to request compensation for the room and board if the person is making a "fair" wage?

Why would it not be reasonable?