it back to the old woman, but she said keep it. a lot of people say they found $20 and a lot of people found walking their dogs exactly what i found in new york city. thank you for joining us, i'm megyn kelly. this is "the kelly file".file.. welcome to "hannity" tonight, we have a jam-packed edition of the show. ted cruz is in the house, america, are you ready? let's roll. the road to republican victory in 2014. >> republicans are going to take the u.s. senate. >> ted cruz and karl rove are here with their analysis. >> we shall pay any price. >> behind all the numbers lies america's ability to prevent the greatest of human tragedies and preserve our free way of life in a sometimes dangerous world. >> a strong military has been the corner stone of presidential policies for decades. >> while this smaller capacity

entails some additional risk. >> what our current commander-in-chief is out of touch. and pulling support if governor jan brewer doesn't veto a bill. now, earlier this week on the program we had the columnist, the man i respect, and by the way, rarely disagree with. he wrote a column about texas senator ted cruz which i disagreed with. >> there would not be a united states senate today if george washington followed the policies that ted cruz is following. george washington didn't have the forces to confront the army day in and day out. they fled, all the way across the hudson and new jersey. all the length at new jersey and camped at valley forge for the winter because he didn't have the forces. when he saw an opportunity to launch a battle he could win he

launched it and won it. and it was a dramatic turn harde around, you don't fight every battle. >> senator, you get a lot of air time, a lot of people talk about you. i don't know if you like that or what. but that is the reality of where we are today. why do you think that is? what do you think is happening that the party seems more divided than i can ever remember it. what do you think is going on? >> well, i think that is true. i admire and respect him. listen, i have read his works all my life. he istastic thinker. and i actually agree with most everything he says. except in the congressional leadership in the senate, you have to pick your battles. i don't think we need to fight every battle. there are two significant battles that i think we ought to

fight on and i tried to fight on as much as possible. they were number one, obamacare, the most disastrous law hurting millions in this country. number two, the debt ceiling, because we're bankrupting our kids and grand kids. mr. sole said you should fight on fights we can agree on. and if they had the votes, just a few years ago congress used the debt ceiling to get the budget control act and we did that with barack obama as president and harry reid as majority leader. if we showed the same resoluteness now than we did we could have gotten spending forms. unfortunately, we just rolled over. >> see, i support your way of thinking and support the fights you were picking here, both on the debt ceiling and obamacare. didn't they say no, this is not the right time.

then when the continuing resolution comes up they say no we're better off fighting on the debt ceiling. well, the debt ceiling came and went and they gave obama a blank check. they didn't fight. i don't know what the thinking is, except they don't seem to want to fight. >> a lot of folks say sean, you don't understand. we got to win elections. you know what, you don't win elections by rolling over. you win elections by drawing a line in the sand and giving people a reason to show up and vote. look at the last four election cycles, in 2008, 2012, we followed the leadership strategy of keep your head down and don't rock the boat. and republicans got annihilated. the one election that was a good election for us, 2010, we drew a line in the sand. we said we would fight with every ounce of fight against obamacare. we're going to stop bankrupting our kids and grand kids and won

an historic election. that is how we win, that is how we take a senate is taking principled stands with america. >> didn't reagan take on the establishment in '76 and challenging a sitting president? and didn't newt gingrich have a pretty bold agenda with the american people? i don't think if i asked people what the republican party stands for today, i don't think i would get a coherent answer. i don't think most people know. >> that has been the pattern over and over. listen, the battle for who the republican party is, is not new. you go back to the rockefeller republicans, back to reagan in '76, and newt gingrich. the pattern is, there were always voices in d.c. who said don't pick a fight. don't stand for anything. that is the path to victory. but they keep losing elections. we win elections not when we fight everything. i don't think we should fight everything. i think we should take principled stands with the american people on things that matter and not bankrupting the

country is right up at the top of that list. >> i've been suggesting five things, one, the penny plan to balance the budget because that reins in spending. we ought to duplicate north dakota and that means open up energy production all over the countr country, fracking, you tell me, these five things, i would think the alternative party in the country could agree with? >> well, sean, to quote jerry mcguire, you had me at hello. >> i'm trying to get an answer. >> i completely agree. yes, yes, yes and yes. you're exactly right. but look, that is presenting a positive pro-growth vision. there is a better way. we can bring back economic growth and get people back to work but not continuing down the road of the obama economic policy which is hurting millions of american's all over this

country. >> are you seriously considering, a lot of people banter your name out there, are you considering a run for the 2016 presidency? >> well, i appreciate the question. right now i'm trying to win the senate. i think republicans can take control of the senate in 2014. my view as a senator, as a voter, the person who i intend to vote for is whoever is standing up and leading, whoever is effectively leading. i hope everyone stepping up. i hope we have an abundance of riches. that would be a terrific outcome for the country. >> will you support challengers to members of your party that are currently in office? >> i have said i'm likely going to stay out of incumbent republican primaries. and so on both sides, not supporting incumbents, not supporting challengers but

leading it to the grass roots to decide. >> all right, senator ted cruz, thank you for joining us. i hope you keep up the fight and i hope the republicans get a back bone. they have been too timid lately. they need principles to stand on and a vision to put out for the american people. thank you, ted cruz. >> well, thank you, sean, thank you for putting out the truth as you do every day. all right, rand paul, one report claims he is a frontrunner. we'll have the architect, karl rove. he is in studio. plus, the documentary filmmakers who had me screaming at the television. they will defend their position. captain obvious: i'm in a hotel. and a hotel is the perfect place to talk to you about hotels. all-you-can-eat is a hotel policy that allows you to eat all that you can. the hotel gym is short for gymnasium. the hotel pool is usually filled with water. and the best dot com for booking hotels, is hotels.com.

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. welcome back to "hannity," an article today over at national journal.com is declaring that senator rand paul is the early presidential choice for 2016. he may not be your usual establishment guy. could he lead the party back to the white house? here is somebody who knows something about presidential candidates. how are you, karl rove. i'll try not to breathe in your direction. >> my wife came to new york and came home sick. >> interesting to a lot of people, what names come to mind -- >> look, there are 16 of them. let's stay focused on this one we were talking about tonight. i thought first of all nobody wants to be named the early frontrunner. because that happened to chris christie and they came after him. and so i hope senator paul strikes me as a very sharp guy

does not want to be seen as the frontrunner. >> you supported him for the senate. >> oh, yeah, we spent like 3 or $4 million from american crossroads, to help. to me it is very interesting. he is a contender. too early to start, in my opinion, having frontrunners. but he is a contender. he is let libertarian than his father. and he is really a pragmatic politician when is comes to the factors. he says the republican party and conservatives need to recognize that our principles are for everybody everywhere, at all times. he says why doesn't the republican party make its case in the latino community, african-american community, young people, he mainly said he wants a party of tattoos, referring to young people. we'll see how it works out. i'm not certain i agree with everything he says -- >> he has spoken at colleges -- >> he is fearless and sincere

and trying to encourage others to join him. i think it is one of the most appealing parts of his personality and his political approach. he believes we ought to as conservatives have confidence in the principles we apply, other than just saying i'm a conservative. >> why is ted cruz being attacked as often as he is by fellow republicans? >> well, because he is attacking them. he raised money for the senate conservative fund to go after republicans in primaries. vowed he wouldn't do that and then he stay out of primaries, and it is now revealed he signed another fundraising letter that is involved in campaigns against republicans. >> well, this is deeper than that. >> look, he had an idea. and rather than taking that idea to see colleague news the caucus and saying look this is what i want to do. i want to de-fund obamacare, he played a different strategy. they heard about this from people back home saying you need to join with ted cruz. they're saying what is his

strategy? when he has lunch with them, he doesn't bother telling us what his ideas are, when we now ask him what his ideas are, several of them said it to me. what does he want them to do. that is the end game. >> so that was during the cr, when he went with the filibuster, but remember at the time the very senators who say it was a bad strategy, the time to fight is the debt ceiling. and the debt ceiling comes and the republicans put up no fight and then they got mad at him because he demanded a vote on the senate floor. >> and look, here is what happened, i think, i have not been in washington in the last couple of weeks so i missed the up-front and personal conversation with senators. remember what happened during the battle last fall. the republican numbers went in the tank and the democratic numbers rose dramatically. and we have had the biggest gap since we have had in 2006 in the polls. so i think what it does was it caused republicans to say do we want to go through that again when it looks like we're trying

to shut down the government? they pulled it off in 2011 when they were able to push obama into a position of weakness. obama looked at the idea of the republicans saying we're going to shut down the government. he said bring it on, i saw you do it last fall. let's bring it on again. >> how many seats do you think the republicans have a chance of picking up? >> i think the tenth one, the seven democratic seats in red states, north carolina, west virginia, south dakota, montana, arkansas and louisiana. in four of those, the incumbents in three. we have an addition to this in michigan, the purple state. scott brown gets into that, the real race. today, the news is breaking into that. corey gardner, a bright young rising star will take on udall, a terrific guy from northeastern

colorado. a young, thoughtful strong conservative. really, we get to ten, we have the possibility of oregon and minnesota. remember, in 2010, we won five seats in purple states. states that barack obama had taken two years earlier. florida, pennsylvania, ohio, wisconsin and even his home state of illinois. so if we have seven red states and we now have at least three and could have as many as five blue states we have a real shot at picking up the sixth. >> all right, what about kathleen sebelius? now she is saying $7 million, those were the cbo numbers in terms of a goal. >> we have been hearing for a year and a half from the administration that we're going to have all of these sign-ups. they had every chance to say what their number was if it was different than the cbo and they didn't. and it was baloney. they ought to fire this woman, i know they don't want to. this is not the only lie they're talking about.

let's go to the white board. on january 10th, the president tweeted out saying from his personal account we're doing great because we have six million people who now have coverage because of obamacare, because of health care reform. first of all, 2.1 million people were those that signed up through the exchanges. and as we know, as many as half of it have not paid for it. the other 3.9 million were people who signed up for medicaid, the only problem is this, 55.9 came from states that didn't expand medicaid, they were already eligible under the existing law. they were not eligible because it was the affordable care act, obamacare. 45% were in states that expanded medicaid. so the majority of people came from states that the affordable care act -- >> numbers much lower. >> now it is even worse than that. reading this, this is the official document from the centers of medicaid/medicare services, hhs, i'm reading all the documents, this is a big chart showing all the people who signed up with medicaid.

who expanded medicaid because of obamacare. and then i'm reading the foot notes and come to find out in six states because of obamacare, the foot notes, they acknowledge the numbers they have, including the renewals. we don't know how many of the -- >> washington accounting -- >> the majority of the 3.9 were in states that didn't expand medicaid. and a majority of them looked like people who renewed their medicaid coverage. >> karl rove, thank you for joining us. appreciate it. coming up next on "hannity." >> we reduced taxes and now people are more vulnerable. my job is to communicate to people the absolute imperative to use the public resources to maintain the safety net. >> all right, the filmmakers of that documentary had me yelling at the tv. they're going to be here to defend their movement. and we'll have much more strait [ male announcer ] frequent heartburn? the choice is yours.

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welcome back to "hannity," last week i told you about a documentary that i saw on hbo that was called "american winter," profiling the financial struggles that families living in portland are facing. here is a clip of them. >> i hear them in bed sometimes saying we skipped dinner because we couldn't feed our kids.

sometimes when i hear that i skrie. sometimes. >> i want to go to college. i want to be able to have a good life. and it makes me worry, like how am i going to be successful? and how am i going to be able to provide for my family? i worry about that every day. >> now, these stories are just gut-wrenching, and i like every american you don't want it to happen in any country, especially one as prosperous as america. but the solutions offered were nothing more than the same liberal talking points. here is what i mean by that. >> if capitalism is not regulated or checked there is a ha harsh logic. and it will always seek out the lowest costs, highest return. we've reduced taxes and now people are more vulnerable. and my job is to communicate to people the absolute moral imperative during these times of

using public resources to maintain this safety net. >> if there was a shred of truth to the idea that the rich got richer and everybody else would be better, today we would be drowning in jobs. it is obviously not true. >> here are the brother brother makers of the film, guys welcome. >> thank you. >> my heart breaks for every person who suffers in this country today. if capitalism, unregulated, unchecked. you really believe that is the answer today, checking capitalism? >> well, what we wanted to do. we saw that during the economic downturn there were more people out of work than at any time since the great depression. and millions of people were losing their homes. and our specialty is capturing life in progress in a very authentic way. and what we wanted to do is just

show what families are going through. we felt that during the great depression they hired photographers like dorothea lang to go out and show what families were going through. and we felt we wanted to make a documentary that was non-polarizing. >> well, how are you saying that is non-polarizing if you're saying that capitalism left unchecked -- look, i'm watching this film, i'm saying that a country with the resources we have and the energy we have, i look at government as the biggest obstacle right now for people becoming successful. for example in the energy sector, leases on private lands are down 50%. i'm getting jobs on my radio show, paying people $100,000 a year, where, on private lands in places like north dakota. those are opportunities i would love to pass on to people in

your documentary. >> well, certainly not everybody can move to dakota. >> why not? >> some of these families are in situations, john in our film has a down syndrome son, he is almost destitute, the sheriff is at the door trying to take his house. >> why can't we raise the money. i could hook him up with any of the people in north dakota that is hiring hundreds of people. >> north dakota is not going to solve the job crisis in this country. >> oh, energy would, actually. >> there are people out of work. and there is the fact that people like brandon in our film, he lost his job and three months later he got a job doing the same thing for half the amount of money. and now he can't support his family. >> guys we just accumulated $7 trillion in the last five years in new government debt. and you're saying that it is

capital i capitalism that is the problem. in spite of all of this government money, all of this stimulus, all the obamacare, all the stimulus, all the recovery, we still have 50 million americans on food stamps. government is not providing the answers and you're attacking capitalism. that is where the disconnect is here between us. >> we're saying we need to come together as a country and we need to address these problems. >> that is not the problem, you said that capitalism needs to be checked and regulated. >> among the calls coming in, i think we just need to come together not as democrats and republicans but as americans and try to find solutions to these very important problems. >> if that is what you said i wouldn't have been screaming at my tv set. i was screaming at my tv set. because you were saying that capitalism is the problem. >> no, capitalism -- no, we're not changing what we're saying.

we're saying this is imdemic. this has been going on for 40 years where taxes have been lowered and people are suffering. and that the solution is not democrat or republican. it is everybody coming together. looking at like this -- >> look at the latitudes -- you know what the answer is, unbridled business creation where government gets off of our back. the antithesis of what you offered as a solution in the documentary. >> but it does say in the document that corporate profits are higher than ever. that stock market is higher than ever, yet people are -- many people -- >> government spending is higher than ever. >> people are now working for lower wages. and so we need to find some more solutions. we're trying not to make a documentary that offers solutions. we're trying to make a documentary that gives you a window into what american families are dealing with. >> and that is why the film

resonates with people all over the country. we're doing screenings in nebraska, montana, because the people who work in social services and government, they all feel like they're maligned. if you have better solutions. >> you can go to my website hannity.com. and i have partnered with some of the most successful energy companies in the country. and right now there are hundreds of jobs available. high-paying jobs, good career jobs. >> yeah, there are green energy jobs, too. >> there are green energy jobs, too. >> and one industry is not going to solve this problem. >> actually one industry could solve the problem if government would get out of the way and allow drilling and fracking and coal mining production, yeah, it actually would create enough

jobs for everybody. >> okay, we differ there, we agree on the fact that there is a major problem of our time and that we should put all of our energy as a country around bringing the poor up into the middle class. >> i don't disagree with that part. and the best way we can do it is get a new government. coming up next, stewart varney. >> we shall pay any price, bear any burden, meet any hardship. support any friend, oppose any foe to assure the survival and the success of liberty. >> all right, obamacare are you listening? well, apparently not. more on the administration's plan to gut the military. first, stop what you're doing. time to set the dvr, time to record the "hannity" series so [ intercom ] drivers, to your marks.

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and welcome back to "hannity," well, i had an enlightening discussion about the film "american winner." and my next guests, after hearing about the news, our friends, stewart varney and the co-host of "the five," dana stewart. dana perino. >> we're like brangelina. >> well, let me start with stewart. really? capitalism is the problem, that is why? >> capitalism is heavily regulated. the gentleman contested that. wrong, capitalism is heavily regulated. and it is that foot of regulation, the big foot that is stamping out the foot of capitalism, that is the problem. it is a thinly veiled cry for tax more, spend more.

>> dana, how much more does the left want us to spend? >> i also think from their person perspective, what is heartbreaking, they just want to get by. that is not good enough as an american. i think we should do better for them. i don't necessarily think the prescriptions, the policies they're suggesting would actually help them much. >> isn't the answer less government? >> i think the answer is less government, how do we take the pie and slice it up. how do we make it grow? as you say, the government is a huge part of it. the logging industry has been diminished. and the epa banned 80% of the woodburning stoves in this country. so if you're in the woodburning stove industry you better be brushing up your resume. >> the defense secretary said we

would cut back our army levels to the lowest since 1940. let's just take a trip down memory lane, and listen to george w. bush and john f. kennedy. take a listen. >> we shall pay any price, bear any burden. meet any hardship. support any friend, oppose any foe to assure the survival and the success of liberty. >> further deep cuts cannot be made without seriously endangering the security of the nation. >> my budget includes the largest increase in defense spending in two decades. because while the price of freedom and security is high it is never too high. whatever it costs to defend our country we will pay. >> and then chuck hagel said this week, yeah, we probably are not going to be the most dominant force on planet earth anymore. >> it makes me very uncomfortable. i'm a big defense kind of person, america can do a lot.

think what happened yesterday. the president of the united states had his republican secretary of defense, o one, to cover, the draw down troops in america. guess what they did today? i notice big infrastructure spending, who does it benefit, sean? anybody? >> unions? >> it is a contrast. and the president is showing what his priorities are and america made a choice and now we're going to have to make another one in 2014. >> let's face it, america is in retreat all over the world. this president does not wish to exercise power anywhere in the world. we're in retreat. so he shrinks the military to fit that new diminished role. >> wouldn't that void be filled by -- >> by who? >> iran, who is interested in expanding its borders. >> china? >> china perhaps. look, we need to think about the military not just in terms of its capability, the best thing you can do is be such an incredible hulk, people think

oh, let's not bother the americas. the more you shrink that, the more there is a problem. >> but let's talk about this solution, some agree with us, but not as many as used to be, i hear from a lot of republican senators and congressmen who say there is just not a lot of appetite from the discussion and debate that they hear from their constituents. that they agree with chuck hagel. yet the merging of the left and the libertarian wing and the conservatives will be out there saying basically i told you so in 20 years. >> that is one issue i wouldn't retreat from. >> i think you're right, in 20 years, as my mother used to say, rue the day. reap what you sew. yeah, rue the day. all right, guys, good to see you. >> coming up next, the nfl is threatening to pull the nfl next year unless governor jan brewer votes to veto the bill. votes to veto the bill. our great americanthose litt things still get you.

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>> earlier in the day brewer met with popts and supporters of the bimz. she's hoping her decision will diffuse a furor over gay rights in the state. critics called it embarrassing to arizona. [ inaudible ] >> i'm here to announce a decision on the same-sex issue. as with every proposal that

reaches my desk, i give great concern and careful evaluation and deliberate consideration. i call them like i see them. despite the tears or the boos from the crowd. i have protected religious freedom when there's a specific concern that exists in our state. and i have the record to prove it. my agenda is to sign into law legislation that advances arizona. when i address the legislature earlier this year, i made my priorities for this session abundantly clear. among them are passing a responsible budget that continues arizona's economic

comeback. from ceos to entrepreneurs to busy surveys, arizona ranks as one of the best states to grow or start a business. additionally, our immediate challenge is fixing a broken child protection system. instead this is the first policy bill to cross my desk. senate bill 1062 does not address a specific or present concern related to religious liberty in arizona. i've not heard one example in arizona where a business owner's religious liberty has been violated. the bill is broadly worded and could result in unintended and negative consequences. after weighing all of the arguments, i have vetoed senate bill 1062 moments ago. to the supporters of this legislation, i want you to know that i understand that long-held norms about marriage and family are being challenged as never

before. our society is undergoing many dramatic changes. however, i sincerely believe that senate bill 1062 has the potential to create more problems than it purports to solve. it could divide arizona in ways people cannot imagine and no one would want. religious liberty is a core arizona an and american value, so is non-discrimination. going forward, let's turn the ugliness of the debate over senate bill 1062 into a renewed search for greater respect and understanding among all arizonans and americans. >> outside the capital billing her statement announcing veto was met with cheers from gay activists, but supporters of the bill are not accepting the veto

in silence. >> this is how we do legislation now, we threaten to take away a super bowl and pass wild claims around. this is how fundamental freedoms are trampled. you create a stampede in the public with misinformation. but when the dust settles, the people of arizona are going to realize they were hoodwinked. >> the bill was designed to give added protection from lawsuits to people who assert their religious beliefs in refusing service to gays. opponents called it an open attack on gays. now back to "hannity," already in progress.

>> i told the president, next time i have him. i may be a white boy, but i can jump. [ laughter ] fox news senior correspondent geraldo rivera. >> hola, amigo. >> you going to top that one? >> howdy. >> howdy. geraldo's laughing, that's a good sign. but he has this habit of saying really stupid things like this. >> my mother believed and my father believed that if i wanted to be president of the united states, i could be, or i could be vice president. [ bleep ]. >> his mom lived in long island for ten years or so, god rest her soul, and although she's -- wait -- your mom's still alive, it was your dad that passed. god bless her soul.

stand up, chuck. oh, god love you, what am i talking about? a man who will be the next president of the united states barack america. >> you cannot go to a 7-eleven or a dunkin' donuts unless you have a slight indian accent. i'm not joking. >> we didn't even put in the president is clean and articulate. >> somehow he gets away with it and we all chuckle. but had this been dick cheney during the bush administration, the left would have jumped all over him. >> when you see him, don't you feel sorry if he has any presidential aspirations, no one is going to vote for him. he's a great sidekick, if you had a tonight show, he'd be a great sidekick. and i think he's an honorable person, but he'll never be president. >> somewhere hillary clinton is smiling, not that she was worried to begin with. she got the biggest laugh.

>> all right, geraldo, good to see you, and everybody else -- >> just me? you're singling me out? >> i am. coming up, should eric holder be impeached? that's next. save you fifteen percent or more on car insurance.d everybody knows that. well, did you know pinocchio was a bad motivational speaker? i look around this room and i see nothing but untapped potential.

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welcome back to "hannity" yesterday a coalition of african american pastors are calling for an impeachment of eric holder by trying to quote, coerce states to fall in line with the same-sex marriage agenda. reverend owens is with us. welcome to the show. >> thank you. >> explain your position. >> our position is we went in state after state over a period of years and the people voted to

have marriage between a man and woman. and king obama and king holder decided different. they went against the will of the people. america is not where we have a king that gives orders from on high but use influence o office to change america. when president obama first announced he supported smerj we came out the next week against that. first of all he deceived us in telling us when he first ran for president, that he was for marriage between a man and woman, he was never for that. he did that to get elected first and the deal he made with the gay community was when i get elected, in my second go around, i will fight for it. but he did not evolve he was already there. he deceived the american people,

misled the american people. >> you think the president is a liar? you think you purposely lied to us? >> i think he purposely lied. yes. absolutely. and there is, you said if you want your, you can keep your doctor. and it's a pattern. it's a pattern for them to get what they want when they want it. over the will of the people. >> why are you going after holder and not the president? >> well, holder, we have stepped back and we've stopped talking about it. he had gone so far when holder came out a couple weeks ago and what he was going to do going to see to it all of the federal rights have the same rights they have rights and they are billing on the heels of the backs of the civil rights movement. i was in the civil rights movement. we didn't fight for anything like this. as a matter of fact, they don't want equal rights they want superior rights they want special rights.

they have always had the right to do what they want to do. now, they are tramping the religious belief. what about what we belief? if you notice any time the discussion comes up it's about money. it's about money. how it's going to affect money this country supposed to be built on morals first not how much money you get. companies goring after the governor of arizona now. you watch the conversation. it's all about money. and the gay community, both the president with millions of dollars, i said it then and say it again. it's all about the all mighty dollar. >> pastor, we appreciate you being with us before we go, set your dvr tomorrow night. we have a hannity exclusive with greenpeace co-founder patrick moore. why he is saying there is no

proof that man is contributing to so called climate change. set your dvr. "hannity" week nights at nights. we'll see you back here tomorrow night. this is a fox news alert. the house approving republican backed. democrats insist all the deals does is keeps the irs targeting scandal alive and the democrats once again calling the irs targeting a phony scandal and pointing fingers right at fox news. >> we have all heard the outrage and the innuendo republican colleagues and chief mouth piece fox news. >> political theater crowded to make the producers at fox television happy. this is not a political issue. this is not about an r or a d this is about a we. >> this r. here comes