(Post by Bruce Wilder, Elevated from the Comments)
The French Revolution is in many ways, it is the prime historical example of state failure related to fiscal failure (the inability to tax the rich in particular) leading to revolution (and post-revolution, to the unleashing of state capacity in Napoleonic empire building)
Ancien Régime France at the end of the 18th century had an underdeveloped financial sector, was overpopulated relative to its agricultural productivity, had lost a big chunk of its colonial empire and despite the theoretical advantages of its 17th century legacy of centralizing absolutism, was a litigious society of particularism, privilege, and resentment.