[electriclizard]

It is a bit ridiculous to base these things off location when the location would reduce the taxes the company pays for you.

I'd like to understand how these market values are calculated. It can't be supply and demand, because if you move to a place with 0 supply you do not maximize your value.

I should be able to say to them "hey, I create $x for you now and I cost $y, but if I move I will make the same $x for you for $(y-z), and it will make no impact on means or ends since I'm entirely remote."

[colinmhayes]

You are not paid the value you create. The value you create has nothing to do with your salary(other than whether you get fired if value < salary). Your salary is the least your employer thinks they can pay to get an acceptable candidate. As they expand the pool of applicants they figure they can find people willing to work for less.