Bayer exec hopeful that Obama won't be a pain for business

— -- Aspirin accounts for 2% of Bayer's sales. But it remains the product the company is known for, so USA TODAY corporate management reporter Del Jones asked U.S. CEO Greg Babe, 51, for any advice he would offer President-elect Barack Obama on how to run the country without giving business a headache. Following are excerpts, edited for clarity and space.

Q: What's the response to Obama's victory from Bayer's headquarters in Germany?

A: A recent poll of top managers in Europe found 88% supporting Obama. I get that feeling from our headquarters.

Q: How do business leaders in this country feel?

A: There's more of a sense of cautious optimism. Most understand that a shift of direction is necessary. Change was inevitable. All of us are hoping that the change isn't revolutionary but will be manageable over the long term.

Q: What one thing could Obama do to give business a headache?

A: Raise corporate tax rates in the face of a worldwide recession. The timing could be disastrous.

Q: He wants to close business tax loopholes. The public seems especially OK with that.

A: You have to tie that to a reduction in the overall tax burden, the tax rate. Of the industrialized nations, the corporate tax rates in the U.S. are so high that they are second only to Japan. They're lower in the European Union, and much lower in countries such as Ireland. High tax rates slow innovation, slow wealth creation and, at the end of the day, encourage companies to export our work offshore.

Q: Business already has a migraine with a recession at hand. What one thing could Obama do to relieve it or make it shorter?

A: He's already on record supporting the financial bailout. That needs to play out. He's been vocal about supporting a second stimulus package. That is going to be necessary. It must create jobs with things like infrastructure investment, or it will miss the mark.

Q: The financial crisis has swung the pendulum of public opinion toward greater regulation and away from free markets. Where should Obama position himself?