Reason Morning Links: Day Two of Sotomayor Hearings, Dems Lay Out Tax Plan To Fund Obamacare; Chicken Fights in the Cities

– House outlines plan to fund Obamacare. Includes an extra $1,500 tax on families making more than $500,000 per year; $9,000 on families making more than $1 million. Employers with a payroll over $400,000 who don't provide health insurance would pay a fine equal to 8 percent of wages.

– In second day of hearings, Sotomayor promises "objectivity," not to let personal experience influence her decisions.

– Obama may do away with Bush administration's color-coded terror alert system.

– Federal toxic assets program moves forward, even though the problem maybe taking care of itself.

– Urban areas see fights over raising backyard chickens.