There are people who take Work from Home jobs in high CoL areas and then move to low CoL places to pocket the difference, so that’s not too far off from what already happens.

Plus, on the other side, incentivizing companies to hire locally could cause companies to be selective in their location to maximize the convenience of commuting from multiple areas for reduced overhead, or increase the desire for increased urban density and lessen suburban sprawl, which is literally choking the life out of places in infrastructure costs alone. Garbage and water services for the wealthy suburbs is subsidized from the taxes of poor people’s apartment buildings.

Of course, we all know that what would really happen is that we’d see the return of company towns where you sleep in the same bed as 2 other guys on 8 hour shifts so the bed has 100% occupancy 24 hours a day.