I remember hearing about this a while back though, and I believe it all actually started before the budget crisis.
That said, I live in Texas, and am pretty incensed that my state is trying to do the same thing a few other states have to companies that do business on the internet. The end result is they've cost quite a few jobs, meaning they've actually eliminated some tax revenue (no state income tax, but jobless people buy fewer things, so less sales tax). Also, that when I buy something from Amazon it's likely it will take a little bit longer to get to me (not a big deal, just me whining a little).
I think your friends left out the fairly high property taxes in most parts of the state... it's sort of how they make up for no income tax. Then there's the state lottery which pays something like 80% into a general funds pool.... ugh. Plus my ex police officer wife agrees most fines (speeding etc... minor stuff) are for revenue rather than punishment, but that's probably true in most if not all states.