Tax Problems for Affiliates or Idiocy?

What piece of this puzzle am I missing?

There’s a whole bunch of US internet marketers up in arms about their states trying to tax corporations that do business with them in a dozen different ways – They’re trying to tax corporations like they are based where the affiliate marketer is located, or other crazy ways… 50 States, 50 tax systems, one heck of mess.

Nicky Cakes has an awesome, detailed and through post on this tax issue. Ever since I saw Cakes’ post I’ve been confused.

I’m confused because I don’t see how its going to curtail my livelihood, or how I’m going to end up paying more taxes because of it. I don’t see how that can happen.

The way I see it, this is a corporate shell game. If you tax me bad here, guess what I’m going to do? Incorporate in Delaware, Cayman, Bermuda, or anywhere else. Presto… Magic solution.

So what’s the big deal? What am I missing? A problem that goes away with $300 doesn’t seem like that big of a problem – I’ve had toenail fungi give me more work than that.