Reforming an entire country's tax and employment law to enable a few hundred people to work for companies too lazy to comply with the law is impractical at best. It's an edge case, and many of those laws are there to protect workers anyway.

Frequently the issue isn't so much that compliance is extraordinary difficult, it is that there is no section in the HR manual for handling it, and they don't want to deal with it. Most of the time it would take two days of labor at most, and a small percentage of the employee salary to make it kosher. In Canada it is so common that there is an entire industry that will arrange legal employment of Canadians by foreign corporations with no local presence. Most US companies don't even want to hear about how easy it is to comply.

Just imagine the labor pool if hiring from your country by a US corporation was trivial.

I guess the existing rent-seekers wouldn't like it however.

It's not about friendliness, it's about difference. As soon as the legal situation changes, many companies immediately get cold feet.