We do fund public research.

It is then considered the "property" of the university, which is sold as IPR to the highest bidder to make money for the university. It is also summarily locked behind academic paywalls but there are some solutions to that (icanhazpdf , scihub).

We just fail on everything else in that sentence: make results free, and increase competition.

Things might change if those laws were revoked, turning public universities back to the public, and then funding them appropriately. 30% tax funding is not "funding"... Let the privates do what they want.

Is there a truly private quality university? When I say private, I mean one that is not considered a non-profit and thus pays no taxes on the piles of money it rakes in.