Mr. President, I rise to support the constitutional point of order raised against the legislation before us by the distinguished Senator from Nevada. I applaud the senior Senator from Nevada for taking this step so that all Senators can…
Mr. President, I rise to support the constitutional point of order raised against the legislation before us by the distinguished Senator from Nevada. I applaud the senior Senator from Nevada for taking this step so that all Senators can take a position on whether this legislation is constitutional, or whether this legislation is consistent with the Constitution each of us is sworn to protect and defend.
The Senator from Nevada serves with me on the Senate Finance Committee,
and he will remember that I started raising constitutional questions and objections against this legislation more than 3 months ago during the committee markup, and so has he.
This body has spent its time debating the policy of this legislation. This is a terrible piece of legislation that will raise insurance premiums, raise taxes, and limit access to care.
Mr. President, I ask unanimous consent that an editorial from yesterday's Wall Street Journal, titled ``Change Nobody Believes In,'' be printed in the Record following my remarks.
From the standpoint of policy, Mr. President, we should not pass this bill. Perhaps more importantly, from the standpoint of the Constitution, we may not pass it.
Much has changed since the founding of this great country, but one thing has not: The liberty we love requires limits on government. It requires limits on government. It always has and it always will. America's founders knew that and built limits into the system of government they established. Those limits come primarily from a written Constitution that delegates enumerated powers to the Federal Government. We must point to at least one--at least one--of those powers as the basis for any legislation we pass.
The Constitution and the limits it imposes do not mean whatever we want them to mean.
This legislation brings America into completely uncharted political and legal waters and I will not be at all surprised if there is litigation challenging it on constitutional and other grounds. In the Finance Committee, I offered an amendment to add a procedure for the courts to handle constitutional challenges in an expedited fashion. The Finance Committee chairman ruled that amendment out of order so that it could not even be considered. That was his decision, but that means that any future challenges will be handled the old fashioned way, even if that means an extended, rather than an expedited, process.
I ask unanimous consent that a memo prepared by the Conservative Action Project be printed in the Record following my remarks. Its signatories include former U.S. Attorney General Edwin Meese; former Congressman David McIntosh; Karen Kerrigan, President of the Small Business and Entrepreneurship Council; and Brian McManus of the Council for Affordable Health Insurance.
Let me briefly repeat the constitution objections I have been raising for the past few months and which the Senator from Nevada carefully raised this morning. First, the only enumerated power that conceivably can support the mandate for individuals to purchase health insurance is the power to regulate interstate commerce. Since the 1930s, the Supreme Court has expanded this to include regulation of activities that substantially affect interstate commerce. But the key word is activities. Congress has never crossed the line between regulating what people choose to do and ordering them to do it. The difference between regulating and requiring is liberty. I agree with the 75 percent of Americans who believe that the insurance mandate is unconstitutional because Congress's power to regulate interstate commerce does not include telling Americans what they must buy.
Second, the financial penalty enforcing the insurance mandate is just that, a penalty. It is not a tax and, therefore, it is constitutional only if the insurance mandate it enforces is constitutional. If it is a tax, it is a direct tax on individuals rather than an excise tax on transactions and, therefore, it violates article I, section 9, of the Constitution which requires that direct taxes be apportioned according to population.
Third, the excise tax on high-cost insurance plans, which applies differently in some states than in others, is unconstitutional because it is not uniform throughout the United States as required by article I, section 8. The Supreme Court has said that to be uniform as the Constitution requires, an excise tax must have the same force and effect wherever the subject of the tax is found. Not only is this not the case with this tax, which makes it plainly unconstitutional, but that is exactly the design and intention of those who drafted this legislation.
Fourth, the legislation orders states to establish health benefit exchanges which will require states to pass legislation and regulations. If they do not, or even if the Secretary of Health and Human Services believes they will not by a certain date, the Secretary will literally step into each state and establish and operate this exchange for them. This is a direct violation of the division between federal and state government power. The Supreme Court could not have been clearer on this point, ruling over and over that Congress may regulate individuals but may not regulate states. Congress has no authority to order states, in their capacity as states to pass legislation. We have encouraged states to pass legislation, we have bribed them, we have even extorted them by threatening to withhold federal funds. But this legislation simply commandeers states and makes them little more than subdivisions of the federal government. In 1997, the Supreme Court held ``state legislatures are not subject to Federal direction'' and reaffirmed ``categorically'' its earlier holding that ``the federal government may not compel the states to enact or administer a federal regulatory program.'' That should be clear enough for Senators to understand here in this body.
I was amazed to learn that when President Franklin D. Roosevelt chose Frances Perkins as his Secretary of Labor, they discussed social policy legislation including health insurance. As Secretary Perkins later described it, they agreed that such legislation would pose ``very severe constitutional problems,'' including fundamentally altering federal-state relationships. That is why the Social Security Act relies on the payroll tax. Even the Roosevelt administration, which oversaw the most dramatic expansion of Federal power in our Nation's history, would not go as far as the legislation before us today would go.
Should this legislation become law, there would be nothing that the federal government could not do. Congress would be remaking the Constitution in its image, rather than abiding by the Constitution's limits as liberty requires. There must come a time when we say that the political ends cannot justify the constitutional means, that the Constitution and the liberty it protects are more important than we wonderful Members of Congress are. That time is now, and that is why we will vote to sustain this constitutional point of order.
I wish to personally thank and congratulate the distinguished Senator from Nevada for his work on this issue, for his work on the committee, because he was one of the more energetic and more capable people on the committee in raising some of these very important issues such as this constitutional set of issues we have been discussing over this short period of time today. I am grateful for him, I am grateful he has raised it, and I am grateful to be able to be here on the floor to support him in his raising of this constitutional point of order when he chooses to do so.
I yield the floor.
Exhibit 1
[From the Wall Street Journal, Dec. 21, 2009]
Change Nobody Believes In
And tidings of comfort and joy from Harry Reid too. The
Senate Majority Leader has decided that the last few days
before Christmas are the opportune moment for a narrow
majority of Democrats to stuff ObamaCare through the Senate
to meet an arbitrary White House deadline. Barring some
extraordinary reversal, it now seems as if they have the 60
votes they need to jump off this cliff, with one-seventh of
the economy in tow.
Mr. Obama promised a new era of transparent good
government, yet on Saturday morning Mr. Reid threw out the
2,100-page bill that the world's greatest deliberative body
spent just 17 days debating and replaced it with a new
``manager's amendment'' that was stapled together in covert
partisan negotiations. Democrats are barely even bothering to
pretend to care what's in it, not that any Senator had the
chance to digest it in the 38 hours before the first cloture
vote at 1 a. m. this morning. After procedural motions that
allow for no amendments, the final vote could come at 9 p.m.
on December 24.
Even in World War I there was a Christmas truce.
The rushed, secretive way that a bill this destructive and
unpopular is being forced on
the country shows that ``reform'' has devolved into the raw
exercise of political power for the single purpose of
permanently expanding the American entitlement state. An
increasing roll of leaders in health care and business are
looking on aghast at a bill that is so large and convoluted
that no one can truly understand it, as Finance Chairman Max
Baucus admitted on the floor last week. The only goal is to
ram it into law while the political window is still open, and
clean up the mess later.
Health costs. From the outset, the White House's core claim
was that reform would reduce health costs for individuals and
businesses, and they're sticking to that story. ``Anyone who
says otherwise simply hasn't read the bills,'' Mr. Obama said
over the weekend. This is so utterly disingenuous that we
doubt the President really believes it.
The best and most rigorous cost analysis was recently
released by the insurer WellPoint, which mined its actuarial
data in various regional markets to model the Senate bill.
WellPoint found that a healthy 25-year-old in Milwaukee
buying coverage on the individual market will see his costs
rise by 178%. A small business based in Richmond with eight
employees in average health will see a 23% increase.
Insurance costs for a 40-year-old family, with two kids
living in Indianapolis will pay 106% more. And on and on.
These increases are solely the result of ObamaCare--above
and far beyond the status quo--because its strict
restrictions on underwriting and risk-pooling would
distort insurance markets. All but a handful of states
have rejected regulations like ``community rating''
because they encourage younger and healthier buyers to
wait until they need expensive care, increasing costs for
everyone. Benefits and pricing will now be determined by
politics.
As for the White House's line about cutting costs by
eliminating supposed ``waste,'' even Victor Fuchs, an eminent
economist generally supportive of ObamaCare, warned last week
that these political theories are overly simplistic. ``The
oft-heard promise `we will find out what works and what does
not' scarcely does justice to the complexity of medical
practice,'' the Stanford professor wrote.
Steep declines in choice and quality. This is all of a
piece with the hubris of an Administration that thinks it can
substitute government planning for market forces in
determining where the $33 trillion the U.S. will spend on
medicine over the next decade should go.
This centralized system means above all fewer choices; what
works for the political class must work for everyone. With
formerly private insurers converted into public utilities,
for instance, they'll inevitably be banned from selling
products like health savings accounts that encourage more
cost-conscious decisions.
Unnoticed by the press corps, the Congressional Budget
Office argued recently that the Senate bill would so
``substantially reduce flexibility in terms of the types,
prices, and number of private sellers of health insurance''
that companies like WellPoint might need to ``be considered
part of the federal budget.''
With so large a chunk of the economy and medical practice
itself in Washington's hands, quality will decline.
Ultimately, ``our capacity to innovate and develop new
therapies would suffer most of all,'' as Harvard Medical
School Dean Jeffrey Flier recently wrote in our pages. Take
the $2 billion annual tax--rising to $3 billion in 2018--that
will be leveled against medical device makers, among the most
innovative U.S. industries. Democrats believe that more
advanced health technologies like MRI machines and drug-
coated stents are driving costs too high, though patients and
their physicians might disagree.
``The Senate isn't hearing those of us who are closest to
the patient and work in the system every day,'' Brent
Eastman, the chairman of the American College of Surgeons,
said in a statement for his organization and 18 other
speciality societies opposing ObamaCare. For no other reason
than ideological animus, doctor-owned hospitals will face
harsh new limits on their growth and who they're allowed to
treat. Physician Hospitals of America says that ObamaCare
will ``destroy over 200 of America's best and safest
hospitals.''
Blowing up the federal fisc. Even though Medicare's
unfunded liabilities are already about 2.6 times larger than
the entire U.S. economy in 2008, Democrats are crowing that
ObamaCare will cost ``only'' $871 billion over the next
decade while fantastically reducing the deficit by $132
billion, according to CBO.
Yet some 98% of the total cost comes after 2014--remind us
why there must absolutely be a vote this week--and most of
the taxes start in 2010. That includes the payroll tax
increase for individuals earning more than $200,000 that rose
to 0.9 from 0.5 percentage points in Mr. Reid's final
machinations. Job creation, here we come.
Other deceptions include a new entitlement for long-term
care that starts collecting premiums tomorrow but doesn't
start paying benefits until late in the decade. But the worst
is not accounting for a formula that automatically slashes
Medicare payments to doctors by 21.5% next year and deeper
after that. Everyone knows the payment cuts won't happen but
they remain in the bill to make the cost look lower. The
American Medical Association's priority was eliminating this
``sustainable growth rate'' but all they got in return for
their year of ObamaCare cheerleading was a two-month patch
snuck into the defense bill that passed over the weekend.
The truth is that no one really knows how much ObamaCare
will cost because its assumptions on paper are so
unrealistic. To hide the cost increases created by other
parts of the bill and transfer them onto the federal
balance sheet, the Senate sets up government-run
``exchanges'' that will subsidize insurance for those
earning up to 400% of the poverty level, or $96,000 for a
family of four in 2016. Supposedly they would only be
offered to those whose employers don't provide insurance
or work for small businesses.
As Eugene Steuerle of the left-leaning Urban Institute
points out, this system would treat two workers with the same
total compensation--whatever the mix of cash wages and
benefits--very differently. Under the Senate bill, someone
who earned $42,000 would get $5,749 from the current tax
exclusion for employer-sponsored coverage but $12,750 in the
exchange. A worker making $60,000 would get $8,310 in the
exchanges but only $3,758 in the current system.
For this reason Mr. Steuerle concludes that the Senate bill
is not just a new health system but also ``a new welfare and
tax system'' that will warp the labor market. Given the
incentives of these two-tier subsidies, employers with large
numbers of lower-wage workers like Wal-Mart may well convert
them into ``contractors'' or do more outsourcing. As more and
more people flood into ``free'' health care, taxpayer costs
will explode.
Political intimidation. The experts who have pointed out
such complications have been ignored or dismissed as
``ideologues'' by the White House. Those parts of the health-
care industry that couldn't be bribed outright, like Big
Pharma, were coerced into acceding to this agenda. The White
House was able to, er, persuade the likes of the AMA and the
hospital lobbies because the Federal government will control
55% of total U.S. health spending under ObamaCare, according
to the Administration's own Medicare actuaries.
Others got hush money, namely Nebraska's Ben Nelson. Even
liberal Governors have been howling for months about
ObamaCare's unfunded spending mandates: Other budget
priorities like education will be crowded out when about 21%
of the U.S. population is on Medicaid, the joint state-
federal program intended for the poor. Nebraska Governor Dave
Heineman calculates that ObamaCare will result in $2.5
billion in new costs for his state that ``will be passed on
to citizens through direct or indirect taxes and fees,'' as
he put it in a letter to his state's junior Senator.
So in addition to abortion restrictions, Mr. Nelson won the
concession that Congress will pay for 100% of Nebraska
Medicaid expansions into perpetuity. His capitulation ought
to cost him his political career, but more to the point, what
about the other states that don't have a Senator who's the
60th vote for ObamaCare?
``After a nearly century-long struggle we are on the cusp
of making health-care reform a reality in the United States
of America,'' Mr. Obama said on Saturday. He's forced to
claim the mandate of ``history'' because he can't claim the
mandate of voters. Some 51% of the public is now opposed,
according to National Journal's composite of all health
polling. The more people know about ObamaCare, the more
unpopular it becomes.
The tragedy is that Mr. Obama inherited a consensus that
the health-care status quo needs serious reform, and a
popular President might have crafted a durable compromise
that blended the best ideas from both parties. A more honest
and more thoughtful approach might have even done some good.
But as Mr. Obama suggested, the Democratic old guard sees
this plan as the culmination of 20th-century liberalism.
So instead we have this vast expansion of federal control.
Never in our memory has so unpopular a bill been on the verge
of passing Congress, never has social and economic
legislation of this magnitude been forced through on a purely
partisan vote, and never has a party exhibited more sheer
political willfulness that is reckless even for Washington or
had more warning about the consequences of its actions.
These 60 Democrats are creating a future of epic increases
in spending, taxes and command-and-control regulation, in
which bureaucracy trumps innovation and transfer payments are
more important than private investment and individual
decisions. In short, the Obama Democrats have chosen change
nobody believes in--outside of themselves--and when it passes
America will be paying for it for decades to come.
Exhibit 2
Conservative Action Project
The Conservative Action Project, chaired by former Attorney
General Edwin Meese, is designed to facilitate conservative
leaders working together on behalf of common goals.
Participation is extended to leaders of groups representing
all major elements of the conservative movement--economic,
social and national security.
Edwin Meese, former Attorney General; Steven G. Calabresi,
Professor, Northwestern Law School; Mathew D. Staver, Founder
& Chairman, Liberty Counsel; Curt Levey, Executive Director,
Committee for Justice; Marion Edwyn Harrison, Past President,
Free Congress Foundation; Kenneth Klukowski, Senior Legal
Analyst, American
Civil Rights Union; Wendy Wright, President, Concerned Women
for America; J. Kenneth Blackwell, Visiting Professor,
Liberty School of Law; Grover Norquist, President, Americans
for Tax Reform; William Wilson, President, Americans for
Limited Government; Matt Kibbe, President, Freedom Works; Jim
Martin, President, 60 Plus Association; David McIntosh,
former Member of Congress, Indiana; Colin A. Hanna,
President, Let Freedom Ring; Tony Perkins, President, Family
Research Council; Brent Bozell, President, Media Research
Center; Brian McManus, Council for Affordable Health
Insurance; Karen Kerrigan, President, Small Business &
Entrepreneurship Council; T. Kenneth Cribb, former Counselor
to the U.S. Attorney General; Richard Viguerie, Chairman,
ConservativeHQ.com; Alfred Regnery, Publisher, American
Spectator.