While it's been decades since we've had what could be called a free market, people are still allowed to move and work in whatever state they choose. States that overspend and overtax are only hurting themselves. Businesses can move to where they want and not do business where they choose.
I left California 10 years ago for Florida. Moved my business, my employees, cars, everything, lock stock and barrel. The tax savings paid for the move in only four months.
Even though I continually voted against all spending increases and all tax increases, California felt that it could tax me at a higher rate than other people just because I worked harder. My final vote was where to live. I've never regretted it.