That would only help the largest companies, and would put the relatively new and smaller companies at a disadvantage...
Google will always have more money than your startup. But that doesn't mean all the best people work for Google.
Compete asymmetrically.
Developers are valuable. We should be paid accordingly. Many of us are employees now. A fraction of us will become founders one day. This approach simply allows companies to actually get the talent they urgently need to succeed. Paying a premium should absolutely not be a problem if you in fact do have a genuine need for talent that doesn't exist in the US at any price (which is the argument being made in this blog post).
I want to be paid a fair wage. I also plan on being a founder (again. failed once). If engineer wages rise making some business models inviable, c'est la vie. I will just have to make sure to start a business that can actually earn money and pay the bills to hire the talent I will need. When I do found my own company, I am more interested in being able to get the talent than paying a premium.
The way things are now, the benefit basically already goes to the Google's and Apple's of the World. How many startups actually go through the whole process of trying to get H1-B visas to get talent. Every startup I know doesn't consider the process viable because it's not expedient. If I need an engineer within 6 months and I have a candidate willing to work for my business from another country, it would be amazing to pay a 1.5x premium to actually be able to have them over here in the US and helping me and my colleagues build a business together ASAP. The H1-B visa process is so drawn out right now that by the time you get your H1-B visa candidate you're already at the end of your runway.
I would love to see AeroFS write a blog post considering the solution I proposed (which many agree with judging by the number of upvotes thus far).
When hiring managers are asked to consider some subset of {more money, more vacation, true flex time, remote work, 4 day work weeks} in lieu of the cash, benefits, and environment the top tier employers pay, they refuse. And continue the bitching.
Also, the stunning discovery that, post incorporating in sf, people from the peninsula and south bay are unfathomably not as excited about a 50-60+ minute one-way commute as you thought they'd be.
There is a reason why successful startups tend to be friends who closely know eachother and recognize the talent in eachother. Recognizing talent takes time and knowledge and it isn't something you can foist onto an HR department or recruiter.