5/7/2009
By Charles Payne

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Recently the Obama administration began a push to have mandatory sentencing laws for crack cocaine altered. The outcry for years has been that the laws are unfair to African Americans who are 81% of those convicted of selling crack although they are only 25% of those addicted to the drug. The biggest gripe is sentencing is significantly harsher for dealing and possessing crack than that of powder cocaine. In fact it would take 100 times the amount of powder cocaine to equal the same sentence as that of crack although both are still essentially the same drug. 
 
The president's move is laudable although it would be just as easy to increase sentencing for powder cocaine rather than lower it for crack. The fact is I think crack is more destructive to poor people. 

I bring this up because this week the president moved toward fulfilling another campaign promise to go after multinational businesses. These are American business giants that must be a force around the world and would be foolish not to take advantage of growing incomes around the globe. These companies need to be strong and competitive.
 
It was also hinted that these companies were skirting the law or working in some gray area when in reality they have been taking advantage of rules put in by former President Bill Clinton.  So it was another swipe at big business and the result will be less strength for them and higher prices for consumers.  Still, that's not the part that bothers me the most.  The announcement was heralded as a boon for Americans and a way of leveling the playing field for small businesses.
 
I don't get it.
 
American businesses pay the second highest tax rate in the entire world.  The nation that perfected capitalism makes companies pay higher taxes than those in Russia and Vietnam. Taking earnings from Caterpillar and Oracle do nothing to help Joe's Barbershop. If the president really wants to help small businesses and American consumers he must lower taxes. And that brings me back to sympathy for crack dealers.
 
Crack cocaine destroys the lives of its users, their families and their communities.  Businesses improve the lives of people they employ and service including families and entire communities. Crack cocaine makes poor people desperate and rich people poor while businesses; especially small businesses have been empowering Americans for two centuries. I'm not sure how we could have so much sympathy for criminals and so much animosity for true America heroes- innovators and job creators. 
 
I don't get it.

Charles Payne
Wall Street Strategies