Everyone seems to be missing a key issue here. Everyone is constantly complaining about the high costs of everything. Gasoline? Too expensive. Food? Too expensive. Healthcare? Too expensive. Satellite TV? Too expensive. And on, and on, and on. Why the hell isn't government too expensive? If I have to make do with less, then so does the government.
Most people have never run a business selling something and therefore have no clue how much time it takes to deal with sales taxes. In most states, even if you have no sales in any given month, you still have to file the paperwork. Proponents of this tax keep saying that it will "level the playing field for brick&mortar stores". Bzzzt. Wrong. A mom & pop brick & mortar store only sells locally therefore they don't have to deal with the out-of-state sales taxes. That effectively gives them an advantage rather than leveling the playing field. Furthermore, big box stores such as Wal-mart don't give a damn because they already have an army of accountants to deal with the paperwork.
And then who in each local state government is going to process the paperwork suddenly coming in from 49 other states? Oh, well, gee whiz, we don't have enough bureaucrats to deal with it so we'll have to hire more...and pay them...and give them benefits...and a pension...all at taxpayer expense. But wait, this tax was supposed to close budget shortfalls. Oops. Now you've compounded them.
And ultimately, this will lead to only one thing: inflation. Because nobody is going to take the extra costs up the a$$. They are going to pass it on to the consumer. A VAT tax won't solve this either. In fact it will make it worse because invariably there are sticky fingers all along the government food chain.