Nullification has Deep Roots in American History

If it be conceded, as it must be by every one who is the least conversant with our institutions, that the sovereign powers delegated are divided between the General and State Governments, and that the latter hold their portion by the same tenure as the former, it would seem impossible to deny to the States the right of deciding on the infractions of their powers, and the proper remedy to be applied for their correction. The right of judging, in such cases, is an essential attribute of sovereignty, of which the States cannot be divested without losing their sovereignty itself, and being reduced to a subordinate corporate condition.

– John C. Calhoun

Multiple states are lining up to oppose the federal mandate that citizens must purchase health insurance under the massive health care overhaul passed by Congress late Sunday night. North Dakota, Pennsylvania, South Carolina, South Dakota, Texas, Utah and Washington have all signed on to participate in the lawsuit. The attorneys general of these states claim the new legislation violates the 10th Amendment of the United States Constitution by infringing on the sovereignity of the states. (Of course the leaders of those states are also deeply concerned about the massive financial burden the bill will have on individual states)

This is not the first time states have sought to limit the impact of federal legislation within their borders. Looking back in time the most famous incident of nullification, as the practice is known, happened in the very independence minded South Carolina. First, what is nullification? In short, nullification is the belief that states have a right not to enforce federal laws if they believe it is in violation of the U.S. Constitution.

In the wake of the War of 1812 Congress passed a series of tariffs that promoted American made products over British one that southern states believed was unconstitutional. Opponents of the tariffs believed the only way to deal with the issue was to declare the tariffs null and void within the borders of the state. The leading opponent to the tariff was none other than Vice President John C. Calhoun, who authored the South Carolina Exposition and Protest, which stated if the tariff was not repealed then South Carolina would secede from the United States. Calhoun argued that the tariff of 1828 was unconstitutional because it favored manufacturing over commerce and agriculture. He believed the tariff power could only generate revenue, not provide protection from foreign competition for American manufacturing. He believed that the people of a state acting in a democratica manner had the power to veto any act of the federal government which violated the Constitution – the core of the doctrine of nullification.

Indeed, in 1833 South Carolina declared the tariffs were not enforceable within the state. The federal government responded with a bill allowing the use of military force (and indeed naval vessels were sent to South Carolina) against the state if nullification was enoforced. Secession was averted (for a short time at least) when a negotiations were made in Congress that the South Carolina delegation found reasonaable.

While it is unlikely the lawsuits filed this week will lead to the threat of military force for compliance, this kind of legal protest is tried and true. The attorneys general argue the commerce clause, which is the Constitutional argument used for the health care bill, cannot be enforced if people refuse to engage in commerce and not purchase health insurance.

In addition to the South Carolina incident there were other nullification actions taken by various states throughout the development of this nation. The health care lawsuits are just one more fight in the battle over State’s Rights.

Illinois GOP: Health Care Bill will Kill Jobs

Illinois GOP Chairman Pat Brady said the health care bill that narrowly passed Congress last night will kill jobs and add to the budget crisis Illinois is facing.

“After a series of backroom deals and arm twisting by Nancy Pelosi to buy support for an unpopular health care bill, Illinois Democrats helped pass a 2.5 trillion dollar government takeover of health care that will kill much-needed jobs in Illinois. Last week an important Illinois employer, Caterpillar said they would lose under the Democrats’ plan spelling disaster for Illinois workers – and that is likely just the beginning.

“Illinois has one of the highest unemployment rates and bleakest economic outlooks in the country, yet Illinois Democrats voted for a bill that will kill jobs and add to the state’s budget crisis without bringing down the cost of health care premiums. Americans overwhelmingly oppose this bill, but Illinois Democrats ignored the consistent pleas from their constituents who will now have to deal with the consequences of their bad decisions. In November these same voters will have the opportunity to come to the polls and vote for Republican candidates who will listen to them and focus on creating jobs – not on a government takeover of health care.”

America in Bondage: Obamacare Passes

They’ve done it.

Democrats in the House have passed the Senate’s health care bill as well as their own version of the reconciliation bill (which Harry Reid has promised to pass). Following is a run-down of coverage from across the (mostly right side of the) spectrum:

House Votes to Pass Senate Health Care Bill (Fox)

House Sends Health Care Bill to Obama’s Desk (MSNBC)

House Passes Landmark Health Bill (Politico)

Change Has Come (Huffington Post)

NOW Incensed Over Anti-Abortion Executive Order (CNN)

Our Mission: Repeal it (Red State)

Santorum: Health Care Reconciliation DOA in Senate (Newsmax)

The Gloater-in-Chief (Malkin)

Happy Dependence Day! (Mark Steyn)

Pelosi Achieves Biggest Political Victory (The Hill)

Legal and Political Fights Loom for Democrats (NY Times)

The Doctors of the House (Wall Street Journal)

Results are All that Matter (Talking Points Memo)

Democrats to America: Drop Dead (Washington Examiner)

We’ve Crossed the Rubicon (Victor Davis Hanson)

Inside the Pelosi Sausage Factory (Wall Street Journal)

Democrats’ Death by Suicide (Washington Examiner)

House Roll Call: Health Care Overhaul

Last Hope for Voters: Fire Nancy Pelosi

Ten things Everyone Should Know about Democrats’ Health Care Plan

House Minority Leader John Boehner said the Democrat’s health care plan will kill jobs in America if it is rammed through the House this weekend.

The analysis below:

NUMBERS TO KNOW:

• $569.2 billion in tax increases
• $523.5 billion in Medicare cuts
• $48 billion more for Medicaid

1. A Job-Killing Government Takeover of Health Care. No amount of changes or legislative tricks can hide the true destructive nature of this bill: $17 billion in new taxes on Americans who do not comply with the individual mandate, $52 billion in new taxes on employers that do not provide health coverage deemed “acceptable” or “affordable” by government bureaucrats, and new taxes on capital gains, dividends and interest that will further stifle economic growth and job creation.

2. New Tax on Capital Formation and Job Creation. The Medicare tax on capital gains, dividends, and other investment income gets bigger, magnifying the destructive power of this new tax.  The bill increases the tax from 2.9 percent to 3.8 percent, pushing the top capital gains rate to 23.8 percent and the top rate for dividends to 43.4 percent in conjunction with tax relief expiring at the end of this year.  As The Wall Street Journal editorialized this week, this tax will “permanently skew the incentives to work, save and create jobs.”

3. Democrats Continue to Say ‘I Do’ To Marriage Penalty.  The bill leaves in place a massive marriage penalty, which will mean higher premiums for those that tie the knot.  As highlighted in January by The Wall Street Journal, “the disparity comes about in part because subsidies for purchasing health insurance … are pegged to federal poverty guidelines.”  The final bill leaves this unfair penalty on married couples in place.

4. Lower Wages and More Unemployment.  The final bill imposes $52 billion in new taxes on employers, including small businesses, that cannot afford to provide health coverage or that don’t offer coverage.  The effect of this type of tax, similar to a payroll tax increase, would ultimately fall squarely on workers in the form of lower wages or reduced employment.  In fact, the Tax Policy Center concluded that “economists generally believe that the burden of payroll taxes is borne by workers in the form of lower wages, regardless of whether the tax is levied on the employer or the employee.”  The tax proposed in this bill will likely have the same effect.

5. Employers Targeted By Even Higher Taxes to Enforce Employer Mandate. The final bill incorporated President Obama’s suggestion to rake in a little more cash to pay for a massive government-takeover of health care by nearly tripling the job-killing mandate tax on employers who do not offer health coverage to $2,000 per employee. Sure enough, the President’s suggestion raises an additional $25 billion on the backs of American employers, according to CBO.

6. Individual Mandate Tax Reduced?  No, Not Really.  Democrats are highlighting their generosity by lowering the amount of the tax for not complying with the mandate. But just how generous are they?  Not very.  Democrats propose to reduce the individual mandate tax flat payment amount by a scant 14¢ a day.  And, while Democrats “reduce” the individual mandate tax flat payment amount, they actually raise $2 billion more by making other alterations to the individual mandate, according to CBO.

7. The Power to Tax Our Health Care.  The Democrats’ final bill doesn’t just tax individuals and employers if they don’t comply with the complex mandates in the bill. The bill sends the IRS out to tax the very products Americans use to maintain and restore their own health.  New taxes on medical devices, on prescription drugs, and on health insurance itself are all targets of the bill.  And, with $10 billion in new enforcement resources, you can bet the IRS will be taking its full share out of the pockets of every American who uses any of these products or services.

8. Even More Subsidies, Even Greater Threat to the Economy.  The bill increases the subsidies provided under the bill from those provided in the Senate bill by $65 billion, a significant and unsustainable increase. In fact, the Associated Press reported a warning from Massachusetts’ state treasurer, who stated that Congress will “threaten to wipe out the American economy within four years” if it adopts a health care overhaul modeled after the Bay State’s.

9. Taxpayer-Funded Abortion Coverage. The final bill does not include the Stupak amendment language that would prohibit federal funds from being used to fund elective abortions.  Instead, states are given the option to opt-out of providing insurance coverage of abortions.  Still, taxpayers in a state that opts-out would still see their federal tax dollars fund elective abortions in other states. Additionally, each state through the Office of Personnel Management (OPM) can provide access to two multi-state plans, and only one of them will exclude abortions. OPM’s current health care program – the Federal Employee Health Benefits Program (FEHBP) – does not include any plans that cover elective abortion. For the first time, a federally funded and managed health care plan will cover elective abortions.

10. Medicaid Rolls And Waiting Lines to Swell Even More. CBO estimates that as a result of the Democrats’ bill, one million more Americans will get their coverage from Medcaid, which is plagued with financial woes and wreaks all kinds of budgetary havoc on cash-strapped states.  The Democrats’ bill, as the New York Times highlighted, will push even more Americans into a program where they will have trouble finding doctors and have to wait for potentially months to receive care.  That’s not meaningful reform by any measure.

BONUS: Republicans have proposed a health care bill based on common-sense reforms that, according to the non-partisan Congressional Budget Office, would reduce premiums for families and small businesses by up to 10 percent. It is not too late to start over.