Bzzzzzzzzzzz Wrong. Are you going to go elsewhere unless the tax rate of your home state on an individual product is extortianate?
For example car and other large purchases would all be made out of state.
At that point the state in question brings it's tax rates to be in line with the other states and, viola, no problem.
Then the same logic would extend to the income tax.
As it should and already does. I don't pay income tax to my state on wages made in another state. I pay income tax to the OTHER state for wages made in THAT state.
Your concept would fully undermine the tax system of each state and force states to either appeal to the federal government to establish a federal system or force them to enter into a pact whereby they create a nationalized system of taxation.
Bull, it would only stop extortianate state taxes on individual products or create a revolution because ALL the states would tax at an extortionate rate.
If your state taxes an individual product at a less rate than others then your state pulls the taxes for that product. If the other states don't want to come in line with your state's rates they lose out.
What makes the free market OK for businesses but not states?
So you want the state to be allowed to tax nonresidents or fix it so states cannot tax. Which is it?
You folks really shouldn't do your own taxes. Your home state taxes you on all of your income.