Democrats would never allow it as there would be a very sharp contrast highlighting exactly why their positions are so wrong.
Every worker would move to the land of the free leaving a horde of system leeches behind in the tightly controlled land of “The Man”. The liberal gov’t would only last as long as the outside monies kept coming in, would be impossible to remain solvent otherwise.
But this is exactly what our Constitution was designed to do -- keep stupid policies from taking over the entire Republic by limiting the federal government's ability to rob from one state to give to another.
So all we have to do is have a massive return of states' rights. Let the Libs huddle together in their welfare states until the money, which would come only (or mostly) from that state, runs out. Then they figure out what to do next. Which would not include forcing people from other states to pay their bills.
Meanwhile, the worker (free) states would be getting richer and richer, and freer and freer.