(Community Matters) from Playbook: “[Coke CEO] Kent argued that US states did not compete enough with each other to attract businesses while Chinese provinces were clamouring to draw investment from international companies. … ”
my initial reaction: 1) I agree our political polarization is bad for business; it’s bad for everyone, 2) Seriously Mr Kent? how would you like to operate under China’s rule of law? 3) he has some points – but that US states need to compete more or that we need to allow even more tax breaks, on the face, appears unreasonable. Close loopholes, reduce marginal rates and improve predictability? I can buy & support this.
Read full excerpt of comments:
SIREN: CHILLING STORY TO DRIVE DEBATE FOR ’12 AND SUPERCOMMITTEE – “Coke chief criticises US tax rules” in Financial Times video interview at Clinton Global Initiative: “Coca-Cola now sees the US becoming a less friendly business environment than China, … citing political gridlock and an antiquated tax structure. … Muhtar Kent, Coke’s chief executive, said ‘in many respects’ it was easier doing business in China, which he likened to a well-managed company. ‘You have a one-stop shop in terms of the Chinese foreign investment agency and local governments are fighting for investment with each other … They’re learning very fast, these countries … In the west, we’re forgetting what really worked 20 years ago. In China and other markets around the world, you see the kind of attention to detail about how business works and how business creates employment.’ …
“Kent argued that US states did not compete enough with each other to attract businesses while Chinese provinces were clamouring to draw investment from international companies. … Kent’s remarks came a month after Coke said it was ramping up its investment in China … Kent said that US tax burdens and political polarisation were creating uncertainty for businesses and hurting investment. ‘I believe the US owes itself to create a 21st century tax policy for individuals as well as businesses … If you talk about an American company doing business in the world today with its Chinese, Russian, European or Japanese counterparts, of course we’re disadvantaged … A Chinese or Swiss company can do whatever it wants with those funds [earned overseas]. When we want to bring them back, we are faced with a very large tax burden. … When a country is in trouble, you can’t have a polarised political process … There’s too much comfort. We need more needles to stick in politicians.'”
Despite erroneous S Ct rulings, corporations are not people. They are granted charters by states. In exchange for limited liability, the companies’ shareholders agree to pay taxes and operate according to certain rules. This is a complex path to navigate – while encouraging & rewarding companies & shareholders for creating jobs and wealth, they musn’t be allowed to set the political agenda. Their objectives to drive down labor costs, regulations and taxes are not always in the greater national interests. I support globalization conceptually, but other countries borders and currencies aren’t open & our labor force & middle class suffers as a result of the unfair competition
Community Matters 
Why does so much of the media pay attention to what CEOs of big corporations say about the economy? The fact that they are CEOs indicates they are good managers, not that they know or care much about the larger society. Everything he is advocating here sounds great for Coca Cola and its stockholders – which is appropriate because that’s who he works for – but it seems to me would have minimal impact on US jobs. China and the US may compete on many things, but the bottling of soft drinks – which is done regionally – is not one of them.