megyn kelly. this is "the kelly file." tonight, conservatives, liberals and independents alike all under one roof to tackle the hottest political, legal, cultural issues of the day. it's time for an all new "hannity" studio audience showdown. >> this budget agreement takes giant steps in the right direction. >> reaction to the breaking budget battle developments on capitol hill. tis the season for scandal. >> kathleen sebelius isn't providing america the truth. i warned her that her people are

obstructing justice. >> one of the most powerful lawmakers and his investigation into the health care.gov debacle. four innocent people are killed at the hands of this drunk driver. >> this was one time i did ask the court for justice. >> he's given a slap on the wrist because he's deemed too rich for jail. our audience responds to the legal defense strategy that got him off the hook. "hannity" starts right here, right now. earlier today the house of representatives passed the so-called bipartisan budget deal. the bill heads to the u.s. senate where it will be expected to be voted on next week. congressman paul ryan told us that the deal was a step in the right direction. was it? before we turn things over to this wonderful studio audience wen want your thoughts on the conversation. log on to our facebook page. tell us if you think house

republicans did the right thing supporting the budget deal or sound off on twitter using # hannity over the course of the next hour. now to our distinguished studio audience. give yourselves a big hand. [ applause ] >> did you think we would get to a point in government where we would have the leader of a party, today being nancy pelosi saying to embrace the suck. amy? >> i never thought we would hear that vulgarity -- >> is suck bad? i grew up in new york. that's not the worst word i have heard. >> i don't know if i want to hear it from nancy pelosi for many reasons. i look at politics and alternatives. the alternative being a government shutdown would have been a political loser for republicans. >> who thinks this is a good deal? why? >> it's a good deal for republicans.

we have two years of hopefully constructive government. >> you disagree? >> if we have a budget we can move on to other issues. things that are really wrong country. >> this is the same old, same old to me. the bottom line brings us to a $25 trillion debt number. $90 trillion in unfunded liabilities. where is the vision, the leadership, the conservative vision -- mike gallagher, why are you interrupting? >> it's purely political. i don't like it more than you do. but ryan and all the guys are saying we better not lose the obama care momentum. democrats will lose and if the government shutdown occurs, everybody -- >> tom. >> republicans will take the blame because of the message. democrats have the -- if there is a government shutdown the gop poll numbers will go down.

>> how about with 17 trillion in debt on the way to 25 trillion why can't they cut one cent? it is a disgrace to both partieses but especially republicans. >> i agree with you. >> republicans wonder why they get primaries? surprise, surprise. >> we'll go to this side. you hear there is not a dime between the parties. there is an answer. if you had budget problems at home and alan, my partner -- >> excuse me. who are you? >> i'm sean. nice to meet you. how are you? if we had budget problems and i told you that you could cut a penny out of every dollar and balance the budget. >> that's simple. people get it. >> the penny plan.

>> i know this is heart breaking but the federal government isn't a family. >> what a shock. >> we are not here to hold hands and sing kumbayah to each other. >> i held alan's hand. >> you are an anomaly, rare and out of this world. >> this is a moral imperative. we may agree on this. >> let's not start now. >> why ruin a good thing? it's moral because we are stealing that $25 trillion from our kids and grandkids. >> do you know that the deficit has been cut in half -- t not the debt but the deficit cut in half. projected surplus. families don't live the way the government does. we have mortgages, car payments. nobody lives within their means even in families. >> we are forgetting -- >> in the back. >> let's not under estimate the american people. research shows the american people really want to get the budget and debt under control.

the problem is trying to fight over good spending education, work force development is a fool's errand. where we get american support is in talking about means testing entitlements. >> that's going to happen. this is money we are stealing from our kids and grand kids. when do we say we owe it to them not to rob their future? >> we owe it to our kids to have economic growth. by see weak economic growth and a budget lower today than it was a couple of years ago. on top of that. >> what moral -- hang on. >> go ahead. >> this president has given us more debt than any other president before. wait a minute. by tend of his presidency he'll

have accumulated more debt than every other president combined before him. are you blaming bush? my head will pop. >> he's not about blaming george bush. just to bring everybody back to reality, the day barack obama took office we were losing three-quarters of a million jobs a month. we were in the worst economic downturn since the 1920s. >> right here. we are about to enter the sixth year of the obama presidency. democrats are still blaming bush. i can't take it. >> that's the point. everybody has to realize we have fiscal issue, real problems that have to be solved and passing a budget that's noncontroversial might be bipartisan. it doesn't solve the problems that face our nation. if you are not going to solve them today it makes it that much harder to solve them later. we need structural changes to n

entitlement programs. >> this is as good of deal as washington could get now. democrats got to protect social security and medicare. republicans got tax loopholes. >> is it protecting medicare if you are not reforming and letting the trust fund run empty? [ speaking at the same time ] >> that's a bigger project than a budget deal. >> one at a time. >> we have to go one at a time. >> when you talk about weak employment rate. more people are unemployed. unemployment has gone up in the black community. in the hispanic community. with young adults, unemployment has gone up. when obama had both the house, senate and white house, we didn't have a budget in 2009. we didn't have a budget agreement in 2010. that's the republicans' fault. >> you were addressing him. i will let him respond.

>> you brought up real issues. how is this budget deal going to address the real issues? do you improve employment by cutting the budget? absolutely not. >> when this president had the house and senate. >> no way. >> we had no budget deal. >> amy will close us back before we come back for another segment. >> republicans agreed to spend more than a trillion dollars. psychologically that hurts them in october. >> since john boehner has been speaker, he's presided over $3 trillion in new debt. that's a lot of money. we'll the take a break. by the way, they all drank eggnog before the segment tonight. when we come back, it may get mellower. coming up, more with the studio audience. let not your heart be troubled. and secretary sebelius is being called out by darryl issa. her department is charged with criminally obstructing his investigation. our audience reacts.

later, this young drunk driver murder i ared four innocent people but was steentenced to probation because he was deemed too rich to go to to jail. how his wealthy family got him off the hook.

welcome back. things are going from bad to worse for kathleen sebelius. her department is now being accused by one of the most powerful men in washington of criminally obstructing the house committee's probe into the disgraced health care.gov website. today chairman issa explained on "fox & friends." watch this. >> the fact is kathleen sebelius is not providing america the

truth. as a matter of fact in a letter i sent to her, i warned her that her people are obstructing justice, telling individual companies who have serious reports on security flaws. in other words vulnerability to hackers not to provide us the information. >> we turn back to oh the studio audience. penny nance. we have one of the worst rollouts here. one broken promise after another. it's the same thing as benghazi. same thing as targeting conservative groups. >> the irs, on and on. >> fast and furious. >> besides the problems with affordability, accessibility, quality of care there are problems with le lijs liberty in this law -- hang on. let me finish my thought. kathleen sebelius is withholding serious information. shifs asked october 30 for a list of the insurance companies providing abortions so people could choose not to purchase

them. she said she would give him the information and has now refused it. the reason he asked is it's so difficult to find the average person doesn't know. tamara is about to have -- >> we want everybody to have a choice. my choice is not to pay for your abortion. >> listen to what she just said. >> i heard what she said about religious freedom. >> help me out here. >> i can't. this is bananas. >> what about my choice? what about my eight? >> can i get in a question? >> no. you can't. >> this is why people don't vote for republicans anymore. >> you have a duty to your audience. you sent a letter about darryl issa. the warning letters aren't sufficient. send a subpoena. this is not a conversation about religious liberty and religion. >> why not? >> we can have that conversation

on a different issue but not about darryl issa. >> there is a civil war going on. that is war on women. you are seeing it play out on your show. it is a civil war when abortion advocates force women of faith to pay for services we find morally reprehensible. it's wrong. >> let's go to julie. >> females in the administration are covering up for the president. >> explain. >> hillary clinton in the case of benghazi stuck her neck and career out for the president of the united states. what is kathleen sebelius doing? hiding behind the president. >> why isn't she fired? >> that's a real war on women. >> abortion is not being covered by the taxpayers. >> it is. >> it's not. >> it is. >> secondly -- you're the party of choice, right? >>which is why i'm tired of republicans and otherses saying to me i do respect your choice. don't get an abortion. >> i do respect your choice.

>> you are not paying for my abortion. >> hang on. we have to talk the one at a time. wait a minute. she raises a good question. i will try to get tamara to answer and i will give you a shot. why should taxpayers fund for other women's birth control and why should they contribute money to abortion when they find it morally rep rehengsable. >> nobody is paying for abortions. i don't know where you are getting that? oh, my goodness. >> i'm asking where the money is going. >> it's not. show me where in the bill they are paying for abortions. >> it's being administrated through the government. >> where? >> there is information. >> do you want me to pull the bill out? >> let me move on. sarah from the wall street journal. >> the republicans have a potent argument when it comes to obama care. the abortion argument is not going to be the win withing argument if what you want to win is the broad population. if you want to do the things you are talking about, metd care,

social security, big budget deals. you have to go beyond people -- >> you work for the journal. are you happy with the deal? >>i work for the journal. so i'm independent. it is a bad deal for both sides and the best deal both sides will get. >> liz. >> the whole issue of birth control and abortion is sad. i don't know why we aren't talking about who is covering viagra. >> all right. alan, do you want to answer that? >> let's get to the audacity of the administration. i don't know if you saw but the excuse the hhs gave issa about why they are obstructing his investigation is for security concerns. they built a website that's a hacker's paradise. >> investigate the website. >> now saying he can't talk to private contractor and private citizens because of the newfound security concerns. obviously lying. >> he's the head of the oversight committee. let me ask a question.

we have had i.t. professionals, security professionals on. amazon is a 10. health care.gov a 1. the government is recognizing that people are going on the site and their personal is at risk. we spent hundreds of millions and three years. as the colossal screw up. >> this is a guy who said before he took the job as the head of the committee i want to spend every hour of every week of every day investigating the administration. that's all he does. he's got nothing. >> take us out. >> what's unfortunate here is that americans are hurting, suffering. millions of people are losing health insurance coverage. no one is being held accountable or responsible for these people with their dire situation because of obama care. >> did you read the washington post? a guy tried 50 to 100 times, has a 45-year-old son. he couldn't accomplish it in a

hundred visits so he had to spend money he doesn't have to buy a policy. he had to spend money. 50 to a hundred times. no private company should do it. we'll be right back. more with the lively studio audience and our eggnog edition as we continue. the poll numbers that prove more americans are giving up on obama care and the president. later, did you see the 16-year-old? he admits to getting behind the wheel of a car drunk. he killed four people and was only sentenced to probation. the reason, he's too rich to go to jail.t up. a story you have to hear coming up ahead.

welcome back to "hannity." despite continuous attempts to promote the health care over haul, americans across the country are officially just giving up on obama care. according to a princeton research poll 4 in 10 surveyed say they would rather pay the obama care penalty than buy health insurance through the new exchanges. rather pay the oppressive un-american tax than navigate through health care.gov? pretty telling. we bring back our studio audience. chris. >> yes. >> i have a question. answer the question. >> i will. >> millennials down 24%. hispanics -- >> i'm glad you put me in that. >> i'm talking about a group way

younger than you sitting over here. we have a poll where the president -- 54% of americans disapprove of his handling of the job. he's in the 30s. a lot of it ises based on if you like your care, keep your care. like your doctor, keep your doctor. the rate shock that's kicking in. and the realization that your deductible is going up. now that that's true, why not start over because every promise made is not kept. why not start over so the american people can debate it again? >> in politics you never accept defeat. you move on. when you have something as monumental as the health care law that will bring health care to 30 million americans who never would have had it, if we stop now this congress will never -- >> to hell with the american people? >> the problems you reference are going to be fixed. they are fixable. more people will be covered.

>> it's fixable? >> let him finish. >> i happen to like the free birth control. in these tough economic times we should have free birth control. >> who said that? >> juan williams's son is in the audience and a good friend of ours. you are too shy, unlike your father. >> obama care is a disaster start to finish. we saw the politifact lie of the year if you like your plan you can keep it. 5 million people are losing health care. this is an abomination. half a million people have been able to get health care and the problems are just starting to pile up. they will get worse as 2014 goes ahead. >> why not start over? >> republicans were never brought to the table. that was the problem. >> it's sold on a lie. >> there are a couple of things. why not just amend the law? this law is now covering people who are uncoverable.

the kid who tried 50 times to get on. why? because of the pre-existing conditions that are now covered. kids under 20 who don't have jobs -- hold on. i didn't cut you off. some of the kids who can't get jobs out of college will be on their parents' plan. let's talk about health care. my point is -- >> you are selling me but you are not addressing, first of all, the cbo says 30 million will be uninsured. number two, you are not addressing -- this wouldn't have passed if americans knew their plans would be cancelled, doctors lost. they pay more. why should we buy or fix something that was sold as a lie? the whole thing is a lie. you are not addressing that. you are selling it. >> it's a lie. >> it is providing coverage to all americans. >> 30 million -- >> not true.

>> the congressional budget office says after ten years of implementation 30 million will be insured with a net 25 gain in coverage. so it is more uninsured than giving insurance. it goes way beyond the provisions. it createses two new entitlements at a time when the nation -- [ speaking at the same time ] >> shh. lauren. i view this as simple. you've got the young -- and a lot of you are young, except chris. the young, the healthy are literally forced through this ponzi scheme to pay for the sick, elderly and uninsured. >> right. >> why sign up? >> four in ten americans overall say they would rather pay the mandate tax than buy into health care.gov. the mandate tax is going to go up eventually. it's $95 or a percentage of your

income. 1% of $10,000 for an individual. >> exit question. the same one i gave him. tell me why when we have been lied to and the main promises aren't being kept, why when the american people -- that's the classic bait and switch. why should they accept that lie from their government? >> i reject the assertion that it is a lie. >> can you keep your plan? keep your doctor? are we paying less? >> the things that are popular about the affordable care act -- pre-existing conditions, staying on your parents' plan until 26. if i could have a minute. >> things that are wildly popular? >> wildly popular. things that republicans do not embrace. things republicans are talk thing about now. can i finish? the insurance exchanges. the high deductible plans are are all republican ideas that democrats included --

>> i've got to go. let me ask the audience. who thinks this is wildly popular? >> not yet. >> but it will be. >> it will be? two will bes. >> in ten years you will be taking credit for it, sean. >> wildly popular? >> no limit on lifetime expenditures, yearly expenditures, today on your parents' plan to 26. i'll keep going. >> coming up next, these four innocent victims were killed by a drunk driver. the person convicted, no jail time. the family he grew up in is a family of wealth and privilege. when we come back the studio audience will respond. it is causing a national fire storm. log onto our special companion site on twitter @sean hannity. we want to hear from you. would you rather pay the fine instead of signing up for obama

care ? we will about continue.

welcome back to our audience edition of "hannity." the conversation never stops. a teenaged boy was sentenced to no jail time and ten years of probation after drunk driving and killing four innocent victims. the defense argued that ethan couch, the 16-year-old driver suffered from affluenza, a psychological disorder which stems from having wealthy, privileged parent and little to no discipline. really? the family members of the victims are stunned by the judge's decision and the fact that he fought his way out of a proper punishment. listen to what the father and husband of two of the victims had to say. >> money always keeps ethan out of trouble. this was one time i did ask the court that -- for justice.

and that for money not to prevail. >> wow. unbelievable. mike, you have been covering the story in detail. >> i spent time in the dallas ft. worth community. the truth is it's the family of the 16-year-old who killed the four people who hired a so-called clinical psychologist expert to testify that the parents were basically lousy parents who gave the kid everything he wanted all of his life. he had another drunk driving arrest before this and a 14-year-old girl was passed out next to him undressed and his parents gave him no consequences. the father said, i will pay the $450,000 a year for a rehab facility in california. it's got horses. it's near the beach. >> isn't that nice? >> does anybody support this? >> no. >> no. isn't this a natural outcome in society where we don't force people to take blame? people aren't responsible for

their decisions in life. it is always somebody else's fault. they didn't have the proper education or live in the right neighborhood. can't we make excuses for our behavior? >> i studied criminal justice and there is no t accountability left in the american criminal justice system. what happened here is the parents go to jail also. >> that's what needs to happen. these parents are are enablers? it should be them in jail. >> i have represented people in situations like this. talk about the justice system. do i agree with this outcome? no. we had a judge who went along with the probation. a kid who had a defense torchbearer, prosecutors. look at the judicial system. you were in support of the george zimmerman verdict but not this. both things, there is a balance with of -- yes, it does. >> one thing has nothing to do with the other. >> it does. this is the balancing of a judicial system where some win and some lose.

that makes america great. >> angela? >> that doesn't have one to do with the other. >> i'm not supporting this verdict. >> look at o.j. it depends on who you can pay for as a lawyer. if you don't have the money for a great legal defense you go to jail. >> tamara, do you want to follow up? >> there are the have nots who have to lose and take pleas. >> and cut a deal. >> that is a problem with the judicial system. >> it has nothing to do with the george zimmerman case. do not use that. >> amy? >> what about the responsibility of the judge who went along with this? who is this judge -- lindsay lohan? the judge has people in front of her day. four innocent people are dead. >> i agree. >> we are seeing downward departing in this country and it is troubling with rape cases. we have seen issue where judges

haven't held child molesters t accountable. they cannot just downward depart and ignore what's happening. >> i'm against lifetime appointments for judges. >> i agree. >> that means the supreme court. >> we have to make sure people within their community is to understand what's going on. we are seeing a problem with child predators not being held accountable. >> her term expires next year. she's out, gone. no accountability. >> what emote vats that? >> why let this kid off? except if she's making laws herself. >> lauren. >> i'm trying to show compassion. he's 16. he didn't mean to kill four pedestrians. he chose to drink. as you pointed out, he chose to drink and do questionable things

in the past as well. but maybe the decision is we try to reform him. >> -- if he's going to make the adult decision to drink which at 21 is legal, you are 16 years old. but you can't do jail time for killing four innocent people? he made a terrible decision and you should pay the consequences. >> mark my words, he will be in trouble again. this kid is essentially getting away with murder. s he got away with it before with the 14-year-old girl in the car. >> we have to take a break. >> he knows he'll get away with something again. it will catch up with him. >> good points. coming up, they have outdone themselves. the group american at&tieshiest asking who neededs christ during christmas? the war on christmas never ending. good

>> test test >> test >> test test >> test >> test test testing >> test test

welcome back to "hannity." the war on christmas is upon us again. the latest example can be seen on a billboard smack in the middle of times square in new york city. the electronic bill board sponsored by the athiesm advocacy group says to take the religion out of the season and reads, quote, who needs christ at christmas? the display lists various reasons to celebrate the christmas season such as family, friends, food and the rockettes is this freedom of speech or a way to irritate people? i'm a free speech person, tamara. i believe -- alan, you're a free speech person. >> this is free speech. there is no war on christmas. >> sure, there is.

>> i'm the general. what war? nobody is being stopped from celebrating christmas. you can say merry christmas. there are no schools saying you can't use red and green. this is b.s. there is no war. it is revved up every year. it doesn't exist. >> i have read the bible and in book of matthew jesus said be careful not to make a show of your religion among men. this shows people want to prove they are the biggest christian. >> i think they put it up in times square to cause a war on christians which is perpetuated by the american athiests. >> where is the so-called tolerance? why go after christmas and christians? there are schools and towns being affected by when they put up displays and they are being pressured to take them down, it's zero tolerance. >> do you know how much a bill

board -- >>s as a guy named christian, the world stops on december 25. they asked to celebrate family, friends, community. is that horrible? >> also remember not everybody in this country celebrates and observes. >> it's offensive. >> go ahead. >> it's a tacky ad and i didn't buy it from a marketing standpoint. it didn't work well. it is bringing to our attention the fact that not everyone is a christian. i don't think there is anything wrong with that. >> america -- it is an undeniable truth we were founded on judeo-christian principles. we believe in freedom of religion including being an atheist and insulting people. i insult liberals. >> the bible says if you deny jesus before men i will deny you before the father.

>> he said go into the closet and pray. >> he does not. >> he does. matthew 25. >> not to be a hypocrite -- the point is -- >> let her finish. >> the point is it's great we are talking about this, but i shouldn't have to hide that i love jesus and i cell appreciate christmas in order to make you feel comfortable. >> sarah? >> nobody wants that is. >> i am just relieved we are all on the same page about the rockettes. >> okay. liz? >> i can't go into a starbucks without having to hear christmas music, have a christmas cup. there is so much christmas. it's wonderful and i love it, but i think there are other problems to concentrate on other than the attack on christmas. it's fabricated. >> now there is freedom from expression and it's wrong. that happens with the supreme court when they deal with

issues. people should be allowed. i'm jewish and i don't have a problem with the nativity scene. are you taking the menorah out of hanukkah next is this. >> wait a second. if you are jewish -- >> you don't have to point at me, but i am. >> if you're taking december 25th off which we all have to take off. >> i will take off ten days. >> he can go work. >> it's what these people are saying is stay home even if you don't believe in christ. people don't. focus on family, on the rockettes. >> why put a cross through christ and offend people? >> julie, look, i know when i'm being insulted. alan has insulted me. kidding. >> why do you choose to feel insulted? >> i'm making a point. i support everyone's point to say anything. >> i think you need freedom of expression, freedom of religion. this is a freedom of expression. they can purchase the space.

do i find it mean? i do. i'm offended as a christian. but they have the right. >> as a side note, what if this were done against islam? is there a double standard? who says yes? >> of course there is. >> why is there a double standard? angela? >> it's politically incorrect. we are too politically sensitive today. >> amy, go ahead. >> let's get back to what the bill board says. it says who needs christ in christmas, nobody. that's an attack on christians. i don't happen i don't happen to be a believer but i love christmas. do you know who needs christ in christmas? christians? >> we've got to take a break. closing thoughts we don't know where it's going to go next with our lively studio audience right after the break then we're going to break break and drink eggnog. allen spikes it. coming up

straight ahead.

welcome back to hannity. we've got closing thoughts from our studio audience. you're doing stand up this weekend? >> i am. >> all right. >> this is your first time, ever? >> first time, ever. >> do you want to tell a joke? >> can i tell? >> no. you can't tell -- >> if you tell that, i will bear the brunt. >> i'll tell a fox news joke, it's a good one. i won't get fired. >> no. no. i don't want to risk it. >> i just want to get to the point you know there is cash for kids scandal in san francisco. two judges or prosecuted in regards to pay to play with sinking the president for money. in this case in dallas i think we need to look at our criminal justice system. be sure you can't, you know this is a real serious issue. i know democrats and

republicans should be able to agree on.. >> i think we should talk about christians love of contraception. >> who said that? >> i did. i think amy people should have recreational activities that are affordable. i think getting free contraception gives people the opportunity to have it. guess what? you don't have to have an abortion if you have contraception. and you don't have to be on welfare if you are on contraception, make it available. it should be in jars when walking into buildings on the street. >> talk about raising your kids is that what you want your kids to see? >> you liberals are generous and giving with other peoples money. why don't you and your liberal friends on birth control, why don't you pay for it? let other people not pay for it? how is that? >> i do pay for myown. i don't

want little johns running around. >> why should anyone, i'm going to be crude here, nobody else is having that sex. why should they pay for it? >> they're having -- >> birth control -- >> you're a peeping sean? looking into bedrooms? >> you want people to pay for other peoples birth control pills? >> the sisters of poor are a group of nuns in 30 cities suing kathleen sebelius. they don't think they should pay for chris's birth control. why should they have to pay for chris's birth control. >> does anyone support the nun group? little sisters? >> i'm thinking they shouldn't have to pay. i'm just saying. >> i think the common theme here is that everybody wants good health care for many americans as possible. right? but we're realizing and come to it from a different point of view. only individuals can own

ask control those dollars as best they can. we can't satisfy a panel of 25 people. can you imagine trying to satisfy the values of the country? >> when you look, now, planned parenthood is a navigator of obamacare funds. red flag f they say prevention what s.what they're doing why is there more abortion rates higher than they've been? if prevention is -- >> serious about we want to reduce the number after boringses in the country. can't we agree with that access to contraception should be widely available? that is what we want. >> i agree. >> we can agre. >> i agree. when is the last time you've been into cvs, rite aid or drug store? there are sections. go, pick what you want. you pay for it. >> i'm responsible but other people out there are not. >> you know what? that is the problem. we're not a responsible society

anymore. you hit your head on the problem. >> i make a deal. >> this is from julia. yeahed kraidel to grave government going to take care of you. this is not the way health insurance should be organized what does mandating benefits? >> i just think we're getting this conversation wrong. six out of ten women report taking birth control not just family planning but health issues >> why do we have to pay for yours? i'm not paying for yours. >> you're on a slippery slope we shouldn't cover something because not everyone believes in it. you may not believe in vaccinateing your children. >> hpv vaccine is instrumental. >> i'm not going to pay for someone's marijuana.

>> give yourselves a big hand. you've been great. don't forget, start each weekday morning with fox and friends 5:00 to 9:00. thanks for joining us.