Sept. 14 (Bloomberg) -- Coca-Cola Co. Chairman and Chief Executive Officer Muhtar Kent said the idea of a federal tax on soft drinks, under consideration by the U.S. Congress and President Barack Obama, is “outrageous.”

“I have never seen it work where a government tells people what to eat and what to drink,” Kent said today, responding to an audience question at the Rotary Club of Atlanta. “If it worked, the Soviet Union would still be around.

Lawmakers drafting legislation to revamp the U.S. health- care system have considered new taxes on sugar and sweetened soda to help pay the cost. Obama fanned the debate when he told a magazine he’s willing to consider taxes on soft drinks.

‘‘I actually think it’s an idea that we should be exploring,” Obama said in an interview with Men’s Health magazine going on sale this week. “There’s no doubt that our kids drink way too much soda.”

PepsiCo Inc. Chief Financial Officer Richard Goodman said last week that the proposed taxes “don’t have a very high probability of going forward” because there’s no consumer support for them.

Coca-Cola rose 65 cents, or 1.3 percent, to $52.16 at 4:15 p.m. in New York Stock Exchange composite trading. Pepsi, based in Purchase, New York, dropped 11 cents to $58.70.

Kent said Coca-Cola would be pressured by costs, new competition, environmental considerations and the need for global talent.

“The flight path ahead will take us through some incredibly turbulent skies,” Kent said during his prepared remarks to the club. “At the same time, we believe the upside is significant for our business and our beverages.”

To contact the reporter responsible for this story: Duane D. Stanford in Atlanta at dstanford2@bloomberg.net

Last Updated: September 14, 2009 16:22 EDT