There's also some opinions that say that the states were coerced into letting go of taxation as part of war efforts in WW2.
In 1942 the federal government introduced legislation that increased the federal government income tax rates to raise more revenue. The legislation provided for reimbursement grants to
the states provided that they ceased to levy their own income taxes. Although a state could legally continue to impose its income tax, doing so would impose an increased burden on its residents and also disqualify that state from receiving federal government grants. In practice, this prevented the states from continuing to levy their own income taxes.
At the end of the War, the states sought to regain their income taxing powers but were unsuccessful.
That last bit does not sound like they were happy to lose that income stream.