good for people around my age. not children. >> love you dearly. the brother i never wanted. a new battle over reigning in. preventing the tax agency to ask groups specifically for their political, religious or social beliefs. instead the administration actually wants to expand the irs' control over those kind of organizations. should we rein in the power or give it more? let's go in focus. steve, do we really want to give the irs even more power? >> no. we should be giving it less. they are engaged in suppression, coverup and engaged in trying to make sure that groups don't go

agnst the democrats in 2014 and 2012. brazenly after being found out of doing suppression in 2012, they are now putting in former regulations, 100,000 came in against the regs, including liberal groups like the aclu. republicans can use it against them shday. >> that's a good point. even the aclu is against that. >> i don't think that's wat these regulations are about. look, if you want to -- accomplish a 501 (c) status, i don't think it is appropriate. anybody that's welcomed to give money to a political group, political groups are not being squelched in any way. the difference is that will the donors be disclosed? i don't knowbout you but i think that's a good idea. >> john, the point is that they are trying to squelch the ability of 501-c to make

political comments. that can't be the majority of your mission. they want to rein that in more tightly and give the irs control over that, over free speech. >> yes. i like the idea of reigning in the irs. i almost think it misses the point. the irs is corrupt because it administers a tax code that is corrupted by congress. if you buy a prius you are good, if you have kids you are good. if you are a nonprofit you are good. the pblem is the irs oversee it is tax code. if you wantto fix it y have to scrap the tax code. there is no reason risk t irs should know who is funding certain groups and how much money i make an individual basis. fix the tax code and you fix the irs. there is month other way to do it. >> we have a simple choice here. we have the democratic plan that would give the irs more power to regulate speech and then you have the gop plan that would take some of that power away. which do you prefer? >> you have to take it away. i mean, it is ironic that he cites these rules which i a you

through you to spend up to 49% of your money you raise on political activities and no limits on the time you spend on political activities. now the irs is meg officiating with conservative groups to limit the mey to 40% and to limb at this time time. they are makin rules on the fly. so they are -- you know, you can't cite -- you can't cite the rules and then -- support the irs clouding those rules. >> you can if you understand what the purpose of a 501-c-4. >> you he been looking at the irs now for decades. i don't think -- i don't mean to age you because you are young and beautiful. the fact is that there was a time when the irs used more con -- used more consciously and methodically as a political tool. i thought got rid of that. now they want to get back to it. >> i can't imagine why this white house would want to be exploited or put itself anywhere near what the nixon administration did. even with the kennedy administration did. this is about the opposition.

tting -- a chill on free speech. and it is about nopartisan activities, too, by non-profits for voter education. wow. if you force them to disclose donors make the president disclo all of the intert donors and all of the donors that he will not disclose who donate massive amount tv his campaigns. the irs is engaging and is being forced to engage in political favoritism and it is wrong. it is fatally naive to think that we can sit here with an irs as a tax collector being drag flood public policy and political fight. we have seen them put there before and decades ago. it is happening again. >> what about -- the folks out there, they don't want to give the irs more power, do they? >> not at all. what's happening here is the obama administration is using the irs to data point. they are going through all of these forms and they are picking out specific things that are in common to conservative groups or opponents to the obama administration and trying to propose those as being the things that will not get

tax-free status. that's exactly what they are doing. the shame of all of th is all the time that's being wasted that could have been used to put forth pro-growth tax reforms to get us out of this lousy recovery. >> money as wel. steve, to mike's point the fact is that a lot of the -- what the irs has been doing has been pointed out as illegal -- even under current rules by the inspector general. all show now they are attacking him. >> that's right. and so brazen, david, as -- when with you get caught with your hand in the cookie jar you put it back in and say it is unlawful. chicago should have invented this. what's corruption? >> rick, we were talking before about the inspector general. he came out, of course, with a report saying they were fosing almost exclusively on conservative tea party-like groups rather than some democratic groups that were doing this politically. but now democratare attacking the inspector general saying that he published findings and conclusions that were improper,

incomplete, and that have called into question his independence, ethics, competence, quality control. are they trying to kill the messenger? no. what they are trying is telling the truth. nobody wants to talk about it. he acted improperly. he had meet wings issa. one more thing i have to throw into the conversation. everybody is forgetting what 401-c-4ss were created for. they have been turned into politicavehicles. >> they are going to drop the number from 40% -- excuse me. 49% down to a lower number. you are free to have a political organization. >> hold on a second. hold on. john can't i ddi -- here is what democratic chuck schumer says about redoubling. she trying to get the administration redouble the efforts to crack down on tea party leaks who gained extraordinary influence by being able to funnel millions of dollars and into campaigns with ads that distort the truth and

attack the government. that's what rick just said. whose definition of the truth? do we want to have chuck schumer fine what the truth -- that's why we have a first amendment. so that politicians can't define what the truth is. the general public does based on various opinions. >> that's why we -- >> go ahead, john. >> elizabeth hit it on the head talking about free speech. this is about free speech. the irs locked an anti-obama campaign. much the same way if republicans were trying on push smshg through and muzzled democratic groups that should bother -- >> let me tell you something. how they are muzzling and what they are doing, congressmen are threatening to use anti-service committees to hold hearings, to use their own committees and signing letters on their own letter head. committee letter head pressuring the tea party leaks. the supreme court has already said that you do not have to sclosure donors if your group does not back an individual

candidate. it is drawing the irs into campaign finance regulatio which is not the appropriate place for the irs to be. >> steve, that's why we have an inspector general. by the way, a hit-and-run by rick saying that democrats weren't consulted at all in this -- well, i have in my hand a whole list of -- it is a redacted list of copies of exchanges between the i.g. and democrats from 2012 until 2013. you cannot say that democrats were not consulted. that's what their report says. >> i didn't say -- >> that's not -- >> yes. that's not -- >> that's not true. >> i said the i.g. had meetings with daryl issa and the democrats should have been represented in those meet. >> hold on a second. steve, w have a big letter from the democrats suggesting that there was no contact between democrats and the i.g., that certainly was not true with this exchange of e-mails. we see it was. we have an i.g. they are new attacking the messenger who is the only

independent observer of this process. >> yeah. when you -- attack anyone that gets in your way. you disparage everyone and make it sound like it is a debate out there and we are not doing anything wrong. as for 401-c-4s, engaging in trying to educate people what politicians are doing and that's how you -- social causes. you can't free tend it is an impact on social issues. >> did you can't have some politicians setting them up -- setting himself up as a final word on what the truth is. coming up, what happens when politicians play class warfare. some here say that this is what happens. people starting to threaten their fellow americans. something that just happened right here in america. right here in america. it is [ female announcer ] you get sick, you can't breathe through your nose...

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news channel inside america's news headquarters. some residents in california on edge this week after a threaten grag petey was spray painted on several homes and a car like these bashing the so-called 1%. this one saying "kill people," hateful and nasty stuff. carried out by thugs. but are politicians partly to blame for all of this? >> class war pair is bad for the country, period. history has shown that politicians that took the electorate against each other can use that sometimes to get elected in the short term but in the long term it could be bad for the country. look at the $45 trillion in

unfunded liability has become because of the promises politicians made to pit various classes against one another. it is very, very bad for the economy. >> so you use this kind of class warfare rhetoric. more of these ugly things are likely to happen. >> perhaps. but i don't blame politicians for implementing those attitudes. i blame the people who get you -- impressionable citizens at a younger age and school teachers. my younger daughter came home from fifth grade with an assignment to list five ways that john rockefeller was evil. ing the fact that he made a come commodity more affordable to the middle class was irrelevant. he was in the 1% so he had to be evil. >> politicians are not calling for people to be killed or exiled oanything like that. does that rhetoric lead to this ugly stuff. >> yes, it does. especially when you target individuals or target groups like the tea party and then -- other groups. the real scandal here, dave, is why the mainstream media hasn't

been all over this and create a culture where you police these people and step over the line and you are going to get called for it. instead the president -- communy organizer, needs to charge. he knows nothing but conflict. >> i think it is going to be a cold day in hell when the media starts -- try to help in this situation. do politicians bear some of the blame? >> well, sure. we have a president who is sneeringly using the phrase billionaires and millionaires to scribe people who work hard and achieve a lot. but you know, this says a lot -- has a lot of bad actors. unions that have been egging the google bust that goes from san francisco to google head quarters and even some of the accomplished rich people are fanning the flames and tom perkins of venture capitalist went way over the top when he compares some of this complaint against the 1% of jews and nazi germany. pit probably led to the most recent graffitiins accident when

you set up a side us versus them, even though we are all americans, us versus thm, that leads to bad things, doesn't it? >> look, let's review what's really happening here. i have great syathy for the people of that neighborhood. terrible thing. there is always going to be vandals. this is what happens when there a public discussion about something. there has been a public discussion. look, you have to ask urself the question -- if we are covering this, where were we when political statements made against gay people, which resulted in lots of graiti in west hollywood, california, where were we -- why didn't we cover that story? >> we were probably protesting that, rick. we don't appreciate it when anybody threatens anybody else. >> we didn't cover that. >> we did indeed cover a lot of that on fox news channel but, sabrina, the fact is rick says it is a discussion. i'm just wondering if it goes overhe boundary of a discussion of rich people and poor people in the split between the two. for example, look at the romney campaign. i mean -- it is a whole thing -- whole thing about he was not fit

to be president because he was rich, because he was a rich, greedy businessman. >> that's right. one was disheartening parts of the democratic party today is that they do pit americans against each other. young against old, rich against poor. i think that's one of e things weigh want to have a larger conversation is to talk about what is bigotry. it is not contained to mean the -- discriminating for their race or sexual orientation or race. it is the discrimination against any group. in this case, democrats and progressive groups have really targeted hose who ve worked hard and who have been successful and i just got a wheat right before we came to the show about -- from one of our followers who showed me white privileged conference. these are academics pushing back against anything that sets white people apart. they are pnting to wenth. >> when you became any group for your problems, that's what all of the dictators over history have done.

you don't wantn slide into that here. >> that's if economics of this again. what bother meese about this, when you look at the rich and top 1%, look who has gotten enormously wealthy. look at the founders of twitter, linkden, facebook, these are all people that are lead thing country and global technological change. they are in the 1%. they are little the job creators out there. we want more of these pes of people not less. >> absolutely. coming up, big screens across america. is off about to make a big right turn? [ female announcer ] who are we?

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evangelical christian made "amazing grace" several years ago. there has been a huge market. they are fine waking up to it. >> rick? >> i hear the fill silver medal great. secondly, doesn't this just go to prove what i have been saying to you all for a very long time? hollywood has one ideology -- make money. they made the film because they believe that it is going to make money. that's what hollywood cares about. i'm really glad to see the pac vz giving more to republicans so we can put is to rest sxwuns for all. >> rick has been saying that for a long time. >> yeah. he has been. you know, i think jesus is nonpartisan by the way. anyway, i don't knowf it is -- if this means they are going to the right and i'm afraid they will turn the movie noah into global warming. >> right, right. >> just kidding. >> they are also coming up with a new movie on mary. it is a question whether they

get any of the fell mist stuff in there but i don't think so. they are turning to the right. are they not? >> they my be. you know, i say forget making a movie about religion. they should make a movie about piracy. that's where hollywood as a big problem. they see eye to eye with conservatives. they respect prite property, intelltual or otherwise. they realize it is critical to the economic growth. will is common ground. they a good thing between hollywood and conservatives. >> you look at the number of this hollywood par and are giving more money to republicans than democrats i don't see them as going right wing. in the movies businessmen always made convenient villains. it was true in "chinatown." it is true. it hasn't changed at all. >> is isn't will a change of diction here that you can sense? >> i don't sense that. i think rick is absolutely right. hollywood has always been about profits and i would throw into that that hollywood has been

more conservative than people won't admit. taxi drivers, one of the great all-time film, very conservative message. even if you ok at spike lee films, they often bring with hem conservative messages perhaps -- >> quick. >> i new movie coming out -- "hope and change." >> okay. >> just kid. >> we have to leave it at at. pleased to say we leave it with everybody agreeing. >> john candy said i'm right. >> mark this day on your calendar. sufer dude is back and making a splash over who he says is really to blame for all the easy government handouts. a lucky couple in california finding buried coins in their backyard worth millions. you are in luck. our informers are about to our informers are about to dentures are very different to real teeth.

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i put a little money in it. >> that's it for us for today. thank you very much for watching. have a wonderful weekend. keep it right here. the number one business show m m m m m m m m m m m m m m m bolling. remember the surfer dude? he eats well and here is how. >> on the wonderful t dollar. >> he is back saying don blame him for the free meals. blame the government. >> i don't feel like i immediate to apologize for it. >> here is the shocker, he may be right. we will hear a lot more from surfer dude in a moment. you will get irate. if you eat out get ready to flip out. how you may be paying for obamacare on your next bill. it may make you lose your appeti appetite. the mainstream media kissing up to the obama administration while the