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If every blue state stopped paying federal taxes simultaneously they'd be fucked. Tax season isn't for another sixish months, just saying.
It has to be the employees not the state because companies withhold it and remit directly to the IRS. Not saying you should do this, but if you increase your ~~withholdings~~ exemptions then it won't go to the IRS. Though you will owe it in April and may have to pay penalties for underwitholding.
Constituents would have to unite and convince their house/senate members to repeal the 16th amendment. Probably would be a ton of grassroots support from both sides actually cause everyone hates taxes, and the voters in poor red states would be too ignorant to realize their state would get hosed.
But just overturning the amendment wouldn't be enough. There'd need to be an alternative amendment related to taxation to specifically shift more responsibility to states.
Small technical correction:
To DEcrease withholdings (the dollars shown on the Fed line of your paystub)
One must INcrease exemptions claimed on Form W-4
But the rest is correct. If you underwithhold/underpay you risk penalties come April.
However, if you try to claim so many exemptions as to get to zero federal withholdings, employers are required to second-guess you and make you document the exemptions you are claiming (not all will do this but they're required to nonetheless). But if you go to very little federal withholding, just not zero, employers generally don't give a shit and will just make the payroll adjustments accordingly.