You could also "solve" these problems by cutting every social service. That's the only reason H1-Bs are willing to work for less, because their country doesn't invest nearly as much into them.

People seem to have a moral problem with cutting social services, I wonder why this doesn't go both ways when hiring foreign nationals who can only work because their country doesn't.

They don't even have to be foreign red states have been supplying silicon valley with cheap labor for decades. If you want the pure solution you would have to block hiring from these states too, not just H1B. Do you really want to exploit someone who was taught that the earth is 6000 years old and will also have to uproot their live when they are fired?

You can try to classify underprivileged workers and scale compensation based on their class, but any mistakes would lead to unfair wages. The real solution is to increase the standard of living in developing countries and decrease the standard of living in advanced countries starting with relatively wealthy people. Your solution is just a weird soft ban that implicitly buys into the propaganda that there are genius H1B workers when we all know why companies hire them.