Are you claiming that the state collects the income taxes paid on all the people who work in the state for private companies? Don't be absurd! The number of state employees in a state is so miniscule that that amount doesn't matter -- but to have to remit all the taxes collected in a state -- that's something altogether different.
I said "state employees", not private firms. And the amounts are anything but miniscule ... try CA or NY.
It's the same exact principle and NOT something the states would be willing to try since it would embroil them in a raft of legal and financial dificulties and paralyze their own operations.
Not a chance!! They're not that foolish - and certainly wouldn't want to shut themselves down.