Or to factor it out, the incentive should be (perhaps) for businesses to allow "state agnostic" remote work, or give incentives to move to lower cost of living areas.
The problem with those things is the main decision is made by people who are not affected by the high cost of living; Musk doesn't notice the difference in housing cost between Texas and California, even if his employees would.
the problem is also that a lot of tax and insurance and whatnot are defined by the state you live in. supporting remote work means having to be compliant in every single jurisdiction an employee could possibly live in.
