This is a rush transcript from "Special Report," February 4, 2011. This copy may not be in its final form and may be updated.
BRET BAIER, ANCHOR: Every week viewers vote for your choice online in the Friday lightning round poll. This week the big w inner is healthcare next steps, won with 55 percent of vote.
We're back now with the panel. Charles, Judge Vinson down in Florida, the big ruling this week, ruling that the health care law is unconstitutional. The whole law has to be thrown out because one part is not severable from the other act. It's implication on where this all goes?
CHARLES KRAUTHAMMER, SYNDICATED COLUMNIST: Well that's a train of its own. It's going to end up in the Supreme Court but probably not until at least late next year. Immediately Republicans ought to be doing is holding hearings especially I think on these waivers, hundreds of waivers issued by HHS for unions and other parties on some of the regulations in the bill. It will expose how arbitrary, inefficient and in some way corrupt these provisions are. They're in the bill and go on bended knee to the administration and you might get a waiver or you might not.
NIA-MALIKA HENDERSON, WASHINGTON POST: Yeah, I think the ruling obviously gave some momentum to this whole movement to try to repeal healthcare, and in some ways I think that's what Republicans need to keep the -- you know keep this conversation going. We saw a vote today, a vote in the senate to try to repeal, it failed along party lines.
They are -- Obviously Republicans are looking at these Democrats. 23 who are up in 2012 and they are hoping they can peel some of those folks away. Democrats of course have this argument, which is mend it, don't end it, and so they will try to tinker around. You saw repeal with this 1099 provision with small businesses. So that's what they'll try to do and Democrats will obviously also try to say while we're focusing on jobs the GOP is focusing on re-litigating the past. So those are the arguments you're going to see and of course it's laying the groundwork for 2012.
CHRIS STIREWALT, FOX NEWS POLITICS EDITOR DIGITAL: A lot of kabuki in Congress over this, and repeal, and change, and hearings, and fake hearings and back and forth. The place to watch is the states, that's where this battle is really being fought right now. You have states in basically rebellion against the legislation, now that they have this judge's decision. We have a lot of states -- we have Florida, Utah, Idaho, Texas, Wisconsin, Alaska, that say, well maybe we don't have to proceed with implementation on this if this has been struck down. proceed
So that leaves the administration in the unhappy position of actually wanting a faster resolution because if the states can drag their feet on this, by 2014, when it's time to put it in place, nobody will be ready. So the states and their challenge to this -- and what this fundamentally is -- is a federal versus states power contest, and that is where it's going to play out.
BAIER: Okay, quickly, today the president said that he hoped Egyptian President Hosni Mubarak would make the right decision. He called him a patriot. Also today Iran's supreme leader said he thinks Egypt is going to be an Islamist nation. What about that down the road? Chris?
STIREWALT: Well it's important for Americans to understand difference between freedom, liberty and democracy on the other side. Democracy just means people voting. What we are looking for over there is liberty, that human rights will be enshrined in constitutions and things like that. So as people say "democracy, democracy, democracy" they have to remember that democracy can bring some pretty wicked stuff with it but liberty is what we're looking for.
HENDERSON: Yeah, Iran and Syria, they're obviously interpreting this as a win for them but you almost think that no matter what would happen, they would sort of interpret this as something that would curry favor with them in that region. Israel's obviously looking at this very closely. We are too and hope that this is outcome that is pro-Western. You heard the president today appeal to, kind of the better angels of Mubarak and really talk to him about legacy. So we'll have to see where this ends up.
KRAUTHAMMER: One thing that the U.S. ought not to be doing is to advance Iran's interest in the revolution in Egypt. I do not understand why the administration, starting with Robert Gibbs, on Monday, saying that a new government, provisional government, would have to include non-secular elements, meaning religious elements, meaning the Muslim Brotherhood which is the equivalent of the mullahs in Iran in a government, is incomprehensible. It might happen, but why should we be pushing it, legitimizing it, and demanding it? It makes no sense at all.
BAIER: Ok, Super Bowl weekend, picks down the row. Right here. I want scores. Chris?
STIREWALT: Because I love America, I'm gonna back America's team -- Pittsburgh Steelers 24-17 over the Pack.
BAIER: 24-17, Nia?
HENDERSON: Because I love Steven Hayes I am going to back the Packers 23-20.
BAIER: So 23-20, a close game. You're hoping for a close game.
HENDERSON: Yes, yes.
KRAUTHAMMER: I'm with Nia on that. I do not want to see Steve cry -- enough of that out of the speaker of the house. So I'm with Packers over Steelers 21-17 with a thrilling fourth quarter drive by Aaron Rogers.
BAIER: Okay, this tie is not a Green Bay tie, but I am picking Green Bay, 27-20 over the Steelers. If they win, I may have to wear that tie again. Steve is down there, by the way. We were hoping for a live report but couldn't organize it. He's gonna see the big game, we'll get a report on Monday.
That's it for the panel but stay tuned for an in-depth look at your tax dollars at work.
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