Those are tradeoffs. I could move from my small city, and out to some of the poor areas near here. Yes, I'd pay less taxes, and probably have a much cheaper house, I'd also have a 40 minute commute, have to drive almost that far for groceries and shopping, and a long ambulance ride because of the remoteness.
That's not what I meant about taxes. What I meant is that in California, your property tax assessment is set at purchase time. If you move to a new house, your new property is assessed at the new purchase price. That tax situation can easily create a five-figures-per-year disincentive towards moving closer to your job when you change jobs. It may not be your employer's problem, but it absolutely affects where people choose to work.
The corollary of that statement is that if employers truly want the best people, they're fundamentally doing themselves a disservice by demanding too much in-person time, because not everyone is that easily mobile. It also tends to discriminate against older workers, who are more likely to own a home, have kids in school, have a working spouse, and have various other things that tie them to their current residence and make commuting harder.
Yes, it's a trade-off, but there's no evidence that it is in employers' best interests to force employees to make that trade-off, and that's the point I was trying to make.