Why didn't I think of that? You're truly a genius. Let's implement those immediately!
"Make operating systems completely secure, so that you don't need to buy anything extra."
Completely secure means it is entirely impossible for a malicious party to do anything unwanted, no matter what access they have. So, if I can use physical access to read a file that I shouldn't be able to, then it's not completely secure. So we'll have to eliminate all operating systems in existence.
"Severely punish attempts to compromise computer systems, so that no one will dare to try for nefarious purposes."
Your wish is my command, and fortunately for you, I happen to set the laws for the entire planet. Computer intrusion is now punishable by death. Problem solved, no? Well, you're missing one major thing, which is that we can't find a lot of criminals because they operate behind proxies and often across national borders. But I believe you had a solution to that, so don't let me get ahead of you.
"This solution is great, because its costs are borne entirely by the people whose fault it is that we have a problem. (Maybe tax software companies that make imperfect operating systems to pay for the hackers' bread and water while they're in jail.)"
Oh, good. The costs for finding the criminals will be paid by those criminals. Wait ... how? What if we fail to find them? How do they pay. Can we make up a fake bill for finding them and catch them when they come to pay it?
"Cut off internet and telephone connections to countries that don't fully cooperate in prosecuting hackers, like Russia, China, and North Korea."
Sounds great. Who wouldn't want to close the China market to all companies and customers in other nations? Certainly not me. Down with your connections. I'm cutting all your lines immediately. Now, listen here, China. You better not set up any more lines, or satellites, or let any hackers out of your country to use someone else's connections. Also, you shouldn't get angry that we've cut you off and respond aggressively. We wouldn't be happy. And you'd better not form an alliance with other countries we've done this to to replace the internet and effectively turn the connection-cutting policy back on us.