Nothing changes until the cashflow stops.
Well, for the sake of argument, how about cash flow restriction as noted here.
When cash flow is restricted, at some point you can’t pay all your bills.
Bankruptcy is the inability to meet current obligations as they come due
The problem is that the cashflow never stops. When tax income goes down they just impose a new tax. As tax income continues to go down they just impose more new taxes.
Then when the taxpayers that elected the democrat/socialists flee the resulting socialist "utopia" they elect the same democrat/socialists in their new states, spreading the plague to other states.