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I believe property taxes make up much of the school, etc. budgets in most states.

Yes, however: (1) property taxes do not fund the entire school budget in most states and (2) states spend money on a great deal more than just schools.

If anything, it should be a flat tax.

Um, isn't sales tax already a flat tax? It sounds like you're describing the simplified internet sales tax agreement mentioned in the article...is that true?

Sales tax is a flat tax within a state, but it's wildly variable from state to state - Delaware has none, Maryland has ~6%, NY has over 8%. I think a percentage agreed upon by all states is probably the agreement they mentioned, but I don't think they had enough detail to confirm it.

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