So the remaining traffic would be all expenses, no profit? Doesn't sound like capitalism anymore then, more of a public service.
... Oh wait, that's actually a great idea and I want to see that happen.
Baidu "六四事件"[0] to find out more!
[0] "June Fourth incident", the Chinese name for the Tiananmen square massacre. Other banned search terms include "candle", "never forget", and the numbers 25 and 64.
Ad-free tax-funded search would be kind of neat.
Why do you need to penalize private institutions if users prefer to use them over a government service?