STATES RIGHTS AND THE IRS

"When a state ‘nullifies’ a federal law, it is proclaiming that the law in question is void and inoperative, or ‘non-effective’, within the boundaries of that state; or, in other words, not a law as far as the state is concerned.

Nullification has a long and interesting history in American politics, and originates in the Virginia and Kentucky Resolutions of 1798. These resolutions, secretly authored by Thomas Jefferson and James Madison, asserted that states, as sovereign entities, could judge for themselves whether the federal government had overstepped its constitutional bounds, to the point of ignoring federal laws.

Virginia and Kentucky passed the resolutions in response to the federal Alien and Sedition Acts, which provided, in part, for the prosecution of anyone who criticized Congress or the President of the United States."

The Tenth Amendment Center

I was thinking last night about the effects of nullifying the health care act and how the Federal Government would fight back. It's interesting that the IRS has been chosen as the enforcement arm of the health care bill. Actually, it's brilliant.

Let's say I'm an employer. The Federal Government tells me that I am required to hold back money from my employees to cover their health insurance. The state says that I can't do that because the Fed has no authority within the state and to do so would violate state law. What am I going to do?

If I don't hold back the money then the IRS could seize my accounts and force me to pay. Will the state override this seizure? I suppose that if the bank was chartered by the state with no connection to the Federal Government that would be possible. But that would require an entirely new banking system. Taken to its logical conclusion it would require local currency and the ability to decouple from the Federal monetary system and stand alone.

In the real world banks are completely controlled by federal law and regulation. So what do you think the chances are that a bank will refuse the IRS when it comes calling? And it's not like the IRS has to even show up to do the deed. Everything will occur electronically. How can the state enforce it's laws under this scenario?

All of the above also applies to individuals. If you are self employed and don't pay your insurance your accounts will be seized. How can the state stop that from happening?

Here's how. For every dollar taken from its citizens to cover federally mandated health care the state could withhold tax money that it would normally send to Washington and reimburse the healthcare premiums. This will put the focus on the state, taking leverage away from the IRS. Like all bullies they would prefer to pick on the weak, and that is what individual citizens are. But, if we stand together as a state we stand strong.

I just wonder if the politicians that are voting for these nullification acts have really thought through what they are starting? What I wrote in the last paragraph is the same sort of state action and state unity that led to the War Between the States. The politicians are playing a game. Sure, many probably believe in states rights and the Tenth Amendment but how far are they willing to go? Most are showboating, playing to the Tea Party vote in hopes of reelection. The only problem is, this isn't politics as usual. They are opening a can of worms that goes all the way back to the founding of this country. The power of the states versus the national government was never really decided. Lincoln forced a decision on the people, but because it was forced it was never truly accepted or settled. Well, it's back.

The politicians that are playing this game, with no sense of history, need to realize they are striking matches in a room full of dynamite.