He's not bullying, although he's advocating someone act bullying. Being polite is the best way to resist. Put a human face on the person wants men with guns to come harass. He's not actually using force yet. He's just talking about it.

This is all assuming you have any interest in talking to him. I probably would just avoid the topic. But if I wanted to talk about it, you need to get him to look up the facts on his own and come to his own conclusion. It's unlikely he'll change his mind on the spot if he starts out so dogged. The fact he's thinking about it may mean he'll change his mind later.
1) Ask him for anecdotes when he worked for min wage. Ask him if he's ever managed min wage people. If he talks about a low-margin industry, talk to him about how their margins related to min wage. If he talks about a high-margin industry, ask why he thinks they pay min wage? Ask how low he thinks they'd pay if it weren't for min wage and how high min wage could reasonably be. Listen and respond to human non-policy-related aspect of his anecdote.
2) Ask him if he thinks there is some point where it would affect unemployment? Maybe he says $20/hr. Resist the urge to respond. He'll want you to argue or validate his claim, but just suggest maybe someone will think of a way to test his hypothesis. Don't give him the data of places that have tried it. Say nothing, and maybe he'll look it up for himself.
3) PPACA: Just ask why. If he gives an example of one person who's better offer for it, acknowledge it. Ask how he would improve it from where it is? Ask about the nuts and bolts. If he says something like, "It just feels meretricious to have markets involved in life and death,." you could try a philosophical tack about how someone saving money by living a few stops farther from work is selling time with his family for his money, so not every time life and scarcity coincide is meretricious. That probably won't work. If he persists in emotionalism, just drop it b/c you're wasting his and your time.
4) If he's intelligent, tell him that's an interesting point but you don't see what it has to do with the topic.
5) I have no idea who she is, but I would ask if he's met her. Tell him about an anecdote when you met her or someone who worked with her.
6) Ask him why. Racism is when you lump people of the same race together. Those people are different races, so on the surface this seems un-racist.
7) Ask him why and what it would be replaced with. I think we have sort-of gotten rid of it b/c we don't follow it closely.

If he's starting from different axioms, you can maybe plant seeds. Esp if you can hint, without rubbing his nose in it, that you can derive contradictory propositions from his axioms. If he has the same axioms/values, then it's a question of getting him to look up the facts (for himself) and gently correcting his logical mistakes. It helps if you admit to a mistake or tell about a time when you accepted a logical fallacy by accident.