Along with talk over taxing Exxon Mobil’s record-breaking profits, State Rep. Robert Pritchard (R-Hinckley) said more emphasis should be placed on researching alternative fuel sources.

Pritchard co-authored two bills, HB471 and HB472, designed to provide incentives for flex fuel and stimulate the ethanol industry in Illinois. The state is the largest producer of ethanol in the United States, according to Illinois.gov.

Pritchard said price control and taxation on excessive profits is not part of a free market society.

The government has institutions in place to prevent illegal gaining of profits, he said.

Nevertheless, the only way to solve this problem is through research conducted by the federal government, the state’s governments, businesses and universities, Pritchard said. Developing alternative fuel sources and products, such as flex fuel, ethanol and biodiesel not only will stimulate the domestic economy, but it will reduce the strategic reliance on volatile countries.

Exxon reported $10.71 billion in profits during the fourth quarter of 2005, an increase from last quarter’s $8.42 billion profits.

There’s discussion in government of imposing taxes on Exxon’s windfall profits. But Exxon rejected this proposal on the grounds it is using its profits to conduct research. The more a company is taxed, the less money it has to invest in its own research, said Jeff Reynolds, NIU economics professor.

Oil companies will invest in alternative fuels, research and development if there is a market incentive to do it, he said.

Gregory Schmidt, NIU political science professor, doesn’t believe taxation is the only alternative. “Given that President Bush himself has stressed the importance of overcoming our ‘addiction to imported oil,’ tax incentives for the development of alternative fuels would seem like a good idea,” Schmidt said. “They may be even more justified and politically popular to the extent that petroleum markets are not competitive and if the big oil companies have been reaping huge windfall profits.”

Some believe oil companies conducting their own research is preferable to government taxation.

Steve Litteral, a senior history major, said to “leave the money with the companies. Capitalists will fund their own research, because that is how they will make money.”

On the other hand, people like DeKalb resident Pat Bute, believe the only way to make sure oil companies actually put a good portion of their profits toward research and development is to allow the federal government to intervene. He said, “if the government doesn’t legislate for research, it won’t have it.”