Even as a cyclist, and not a motorist (don't have a driving licence), I think the first thing that should be done is to force cyclists to take some form of proficiency test that is equivalent to a drivers' licence. I try my best to follow the rules of the road, but I don't really know what most of them are anyway, probably. Many other cyclists seem not to care, either. More often than not, I've observed cyclists putting themselves in danger by cycling on the wrong side of the road, or taking a phone call (only once), or three abreast, etc. Or worse still, turning without looking at high speeds. I've nearly died or had a serious accident several times -- and it's never been the fault of a car/ driver, but always a cyclist, or my own fault, or even pedestrians (who can be just as careless).
Anyhow, first step = cycling licences. Tax can follow later...