This argument is not very good. The researchers apply for Federal grants (funded by the taxpayer) to do the research. The University takes a ~30% admin fee off

This argument is not very good. The researchers apply for Federal grants (funded by the taxpayer) to do the research. The University takes a ~30% admin fee off of that grant and usually gets the patent rights. Then the university will license the IP to someone else to develop commercially. Sometimes this is the researcher, other times it is not. Another example, we pay taxes for roads, roads are built buy private companies who "turn more tax payer money into private wealth". Same with defense spending.. taxes go to companies to produce weapons which they sell and... increases private wealth.