Many states are balking at the proposition. For instance, some states such as California require consumers to pay taxes on shipping and handling, while others do not. States' rules vary In 13 states, clothes aren't taxed. Complicating the debate in Congress even further, some retailers and members of Congress are pushing as part of the Internet tax plan language that would expand the number of companies that are subject to paying state income taxes, licensing fees and other such state taxes. States now have differing rules on when companies would be subject to income taxes.
States are seriously concerned about the proposed change.