Coke CEO attacks soda tax as a Commie tactic

A careful observer of the history of taxation might remind Coca-Cola Co. (KO) chairman and CEO Muhtar Kent that taxes have been used for centuries to create incentives for desired behavior. At a Rotary Club meeting in Atlanta on Monday, Kent employed the alarmist rhetoric reminiscent of Whole Foods CEO John Mackey and professional rabblerouser Sarah Palin, calling President Obama's suggestion of a federal tax on soft drinks "outrageous," saying, "I have never seen it work where a government tells people what to eat and what to drink. If it worked, the Soviet Union would still be around."

But it does work, and the United States is still around. Tariffs (which create incentives to buy U.S.-made goods), "sin taxes" on cigarettes and alcohol, bottle deposits to encourage recycling -- the U.S. is no stranger to this incentive system. We have tax incentives to make charitable donations and to buy a home. It's a rare pundit who would insist that consuming sugary sodas is a good thing for any entity other than a soda company and its shareholders (and perhaps pharmaceutical companies that sell drugs and devices to treat diabetes, heart disease, and other obesity-related conditions.)